I don’t know the answer but I’m fairly sure Martin Lewis has mentioned this before so I’d suggest looking at his site. There’s also a forum on there that may have some info.
I swapped suppliers over 2 months ago (October). Took one month (Novemeber) to get a closing bill with £267 credit. Noticed that this credit had not gone into my bank account one month later, so rang my previous supplier, and they told me they are about to go into administration, but customers are protected.
I did a bit a of research which said a new company will be appointed to provide energy and take over the credit/debt, so consumers are not out of pocket.
Trouble is, I'm not a customer any more - I left then two months ago. So, in my circumstance having left my energy supplier, am I now just a creditor (and get back very little), or am I still protected?
I can't find an answer to this particular scenario, as all FAQs relate to being with the supplier when it goes bust. Energy supplier is Better Energy.
I don’t know the answer but I’m fairly sure Martin Lewis has mentioned this before so I’d suggest looking at his site. There’s also a forum on there that may have some info.
The whole regulation around this is shambolic.
My provider ExtraEnergy went under last November.
All my statements were online and inaccessible, never kept paper copies, but I’m fairly certain I had a healthy credit balance.
Scottish Power were appointed to take over, I was put on a very expensive tariff and it took me 4 months to get rid of them. This included paying over £900 for a fictional bill that was created from an estimated opening reading that to this day is unconfirmed.
SP kept blaming the receiver, and to date I have had no correspondence about my account!
When I can be bothered I’ll get back on it, I don’t think my experience is unusual.
Good luck!
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Surely if they go bust and owe you money you would just become a creditor
I work for an energy supplier but I don't know the answer. My gut feeling is you are not protected under supplier of last resort regulations.
I recommend you contact ofgem asap. You may be able to make some kind of claim for the lost deposit, just not on the SoLR scheme.
It's worth noting that if ofgem hadnt have insisted on handing out energy supply licenses like they were bloody smarties, we wouldn't be in this situation.
And it is only going to get worse.
Every time a supplier goes bust, the other suppliers have to pick up their debts, it's referred to as 'mutualisation'
This saddles yet more costs on other struggling suppliers and they go bust also, welcome to the perpetual merry-go-round.
The numbers are simply staggering as well and ofgem are incompetent in legislating against it.
Last year's RO mutualisation was in excess of £100m, that's all getting added into YOUR bills guys.
And all because ofgem in their wisdom decided to give suppliers up to 17 months credit agains c18% of their costs. Then when they asked suppliers to pay up, they couldn't, because they had spent it elsewhere, despite having already collecting the money from you customers.
Do you think they changed to rules in the intervening year?
Nope....
And it's just happened again and it's even bigger this time.
And that's just the renewables obligation, FiT (those pesky solar panels), CfD (generator subsidies) etc etc at wall being mutualised as well meaning you lot end up paying twice.
Since I posted this a few hours ago, I’ve done more research, and found this on the OFGEM website FAQs, regarding the safety net if your supplier goes bust.
https://www.ofgem.gov.uk/consumers/h...s-out-business
‘I recently closed my account. Will I get back the credit I’m owed?’
‘We’ll look to appoint a new supplier who will pay back money due to customers that's outstanding from closed accounts. Costs for energy you have used but have not yet been billed for will be deducted from your account balance.’
So, it seems like there’s a decent chance I’ll get my money back. I guess they have to do this as otherwise nobody would trust the system, and the whole competition principal would break down.
Last edited by noTAGlove; 18th December 2019 at 00:29.
I apologise that this doesn't help you in your current predicament. However, I'm with Bulb and consistently pay just less that is recommended and make a top-up payment every couple of months. I will not keep a large balance with a utility company for precisely the reason articulated here.