Since the energy crisis of 2021, several energy suppliers have gone bust. This is a direct result of the extreme price hikes on electricity and gas, which left millions of households struggling to pay their energy bills.
As the energy market continues to grow and evolve, it’s important to keep an eye on the suppliers and providers that are making it all possible. With that in mind, this blog will take a look at some of the energy suppliers that have gone bust since the start of 2021. We’ll discover what led to their downfall, as well as how their customers have been affected by the news. Read on to learn more about the energy suppliers that have gone bust since 2021.
Which Energy Suppliers have gone bust?
The most prominent of these companies is the former ‘Big Six’ energy supplier, SSE. SSE announced in March 2021 that it was entering administration after the energy crisis caused a significant decrease in demand for the company’s products and services.
Other energy suppliers that have gone bust since the energy crisis include Economy Energy, Extra Energy, Spark Energy, and Scottish Power. These companies all faced a similar fate to SSE and have been unable to survive the extreme price hikes.
The energy crisis has also had an effect on smaller energy suppliers. Many of these smaller companies have been unable to cope with the price increases and have gone out of business. This has caused a lot of disruption to the energy market, particularly in areas where these suppliers were the only option available to customers.
The energy crisis has not just affected energy suppliers, it has had a ripple effect on other parts of the energy industry too. For example, some renewable energy companies have also gone bust due to the increase in electricity and gas prices. This has caused a decrease in investment in renewable energy sources, which could have a long-term effect on the UK’s ability to meet its climate change targets.
The energy crisis has been a difficult time for the energy industry and its customers. Several energy suppliers have gone bust and many other companies have been forced to make drastic changes to their business models. This has been an incredibly challenging time for households, who have had to endure significant price increases on their energy bills.
However, the energy crisis has also highlighted the need for an overhaul of the energy market. The UK government has already taken steps to address this issue, introducing measures such as the energy price cap and the ability for customers to switch energy suppliers. These measures should help to make the energy market fairer and more affordable for customers in the future.
It’s no secret that the energy industry in the UK has been in turmoil since the start of 2021. With rising costs, a rising number of customers in debt and the ongoing uncertainty surrounding Brexit, many energy companies have been struggling to stay afloat. In the past couple of years, there has been a number of energy companies that have gone bust – leaving customers in the lurch and struggling to find alternative suppliers.
Simplicity Energy (January 27)
Green Network Energy (January 27)
HUB Energy (August 9)
PFP Energy (September 7)
MoneyPlus Energy (September 7)
Utility Point (September 14)
People’s Energy (September 14)
Green (September 22)
Avro Energy (September 22)
Igloo Energy (September 29)
Symbio Energy (September 29)
Enstroga (September 29)
Pure Planet (October 13)
Colorado Energy (October 13)
Daligas (October 14)
GOTO Energy (October 18)
Bluegreen Energy Services (November 1)
Ampoweruk (November 2)
Zebra Power (November 2)
MA Energy (November 2)
Omni Energy (November 2)
CNG Energy (November 3)
Social Energy Supply (November 16)
Neon Reef (November 16)
Bulb Energy (in administration – November 24)
Orbit Energy (November 25)
Entice Energy (November 25
Zog Energy (December 1)
Together Energy (January 18)
Whoop Energy (February 18)
Xcel Power (February 18)
What happens when your energy supplier goes bust?
When your energy supplier goes bust, the energy regulator in the area (Ofgem in England, Scotland and Wales, and the Utility Regulator in Northern Ireland) is responsible for making sure customers are not left without a supplier.
In this situation, you’ll be transferred to a new supplier – normally one selected by the energy regulator. The new supplier will be responsible for taking over your account and ensuring you continue to get the energy you need.
It’s important to note that you won’t lose any credits you have with your old supplier, and you won’t have to pay any extra money for the switch. You’ll also be able to keep the same tariff you were on with your old supplier.
What should you do if your supplier goes bust?
The UK has seen a recent surge of energy suppliers going bust in the last few years, leaving thousands of customers without a supplier. This has left many wondering why this is happening and what the future looks like for the energy industry in the UK. Unfortunately, it’s not an uncommon occurrence – and it’s important to know what to do if it happens to you.
Why do energy suppliers go bust?
There are a number of reasons why UK energy suppliers may go bankrupt or otherwise fail. Some of the main factors that can contribute to the failure of an energy supplier include:
Market conditions
The energy market can be competitive and volatile, with prices fluctuating based on a variety of factors such as supply and demand, the cost of raw materials, and government policies. If an energy supplier is unable to effectively manage its costs and prices in response to these changes, it may struggle to remain financially viable.
In October of last year, the price maximum on monthly gas and electricity bills for households was raised by the regulator Ofgem by 12% to £1,277. In April, there will be another 54% increase. However, a huge number of businesses failed because they were unable to pass the cap-induced increase in wholesale prices on to the customer.
In actuality, a total of 28 energy firms have failed since January 2021, affecting close to 3.5 million consumers (see table on p. 15). With 1.7 million clients, Bulb was the seventh-largest supplier in the UK when it went out of business.
Financial mismanagement
Energy suppliers may go bust if they are not able to effectively manage their financial affairs, including their cash flow, debts, and investments. This can be due to a variety of factors such as poor financial planning, over-expansion, or fraudulent activity.
Competition
The energy market in the UK is highly competitive, with many different suppliers vying for customers. If an energy supplier is unable to differentiate itself from its competitors or offer competitive pricing and service, it may struggle to attract and retain customers.
Regulatory issues
Energy suppliers must comply with a range of regulations, including those related to health and safety, environmental protection, and consumer protection. If an energy supplier is unable to meet these requirements, it may face fines, legal action, or other consequences that could impact its financial viability.
What do you do once your Supplier has gone bust?
The first step is to contact your energy supplier. Ask them what their plans are for dealing with the situation. Usually your supplier will have something in place to ensure that your energy supply isn’t disrupted – but if not, you should look for a new supplier.
The good news is that you’re in a very strong position. When an energy supplier goes out of business, its customers are usually offered a better deal from another supplier. This is because the new supplier wants to gain as many customers as possible, so they may offer you a lower rate than what you’d normally pay.
It’s important to shop around and compare different suppliers to get the best deal. You should also look into any incentives offered by the new supplier, such as discounts or loyalty schemes.
Once you’ve chosen a new supplier, you’ll need to contact your old supplier to tell them that you’re switching. They will provide you with a ‘notice of termination’ form that you’ll need to complete and return. This will cancel any existing contracts with your old supplier and ensure that you won’t be charged for any energy you haven’t used.
If you’re worried about how much energy you might need during the switchover period, you should contact your new supplier before you cancel your old contract. This way, you can ensure that you won’t be left in the dark during the transition.
Finally, it’s important to remember that you’re protected by the regulators. If you feel like you’re not being offered a fair deal, you can contact your energy regulator and make a complaint. They will investigate the situation and may be able to help you get a better deal.
Will my energy supply be cut off at any point?
No, Ofgem will switch your provider around for you. Your access to electricity won’t be interrupted. In reality, other than a new provider being chosen for you, nothing will change.
How am I allocated a new supplier?
To guarantee that all customers continue to receive supplies of gas and/or electricity, according to Ofgem, is its main priority in selecting the supplier of last resort.
There are a number of standards the provider must satisfy, but fundamentally, the supplier must demonstrate its capacity to accept the new clients swiftly and effectively without materially affecting its current clientele.
In order to serve these additional clients with gas and electricity without incurring a substantial fee from them, the Supplier of Last Resort must also demonstrate that it has the resources and ability to do so. When choosing the SoLR, Ofgem will also consider whether a supplier will willingly pay back any customers’ outstanding balances.
What if i’m on a fixed rate?
Unfortunately, when you switch to the Supplier of Last Resort, the fixed rate contract you were previously under will expire. A new “deemed contract” with the new provider will be established for you. You are free to search and switch to a different plan whenever you choose because this deemed contract will not charge an early departure fee.
What if I’m on a Prepayment Meter?
Customers with prepayment metres are covered by the safety net in the same way as credit customers are. The money that has been placed onto a prepayment credit balance’s metre is already safe and may be utilised as usual. Any new keys or other equipment required to fill up their metre will be sent to them by their new supplier as soon as possible, and they should continue to use this as previously.
Before receiving their new key, consumers should contact their new provider if they need to top off their metre. The Supplier of Last Resort will be aware of the unique challenges involved in serving PPM clients and will have already demonstrated to Ofgem that they have reliable processes in place to assist them as promptly and effectively as feasible.
What if I owe my Supplier?
Your debt for energy won’t follow you to your new supplier. But even if the former provider has closed shop, according to Ofgem, you can still be required to make payments to them. Regarding the money you owe, the administrator will get in touch with you soon.