Unless you have been living on Mars for the last few months, then you will be aware of the rapidly-rising cost of energy. This swift rise in the price of fuel has meant that petrol and diesel prices have risen way above the rate of inflation over the last 6 months, and more recently the price of domestic energy to heat our homes (gas and electricity) has also risen sharply.
According to some sources, this will
result in several small UK energy companies going out of business altogether
because of the soaring wholesale prices of energy, especially gas. These
wholesale price rises have left some companies unable to provide their
customers with the energy they have paid for.
Government rules state that supplies of
energy will continue for any customer whose current supplier goes out of
business. The new company taking over the supply will become responsible
for taking on any credit balances the customer has. But paying that
credit to new customers might prove to be a disincentive for the larger companies to take on
new business in the first place!
What should you do if your energy
supplier goes out of business?
According to Citizens Advice customers
will still continue to receive gas or electricity even if the energy supplier
goes bust. Ofgem will move your account to a new supplier but it might take a few
weeks for this to happen. Your new supplier will then contact you to explain
your new arrangements. Citizens Advice suggest that customers
take the following actions:
1. While you wait to hear from your
new supplier, check your current balance and (if possible) download any bills
and take a photo of your meter readings.
2. If you pay by direct debit, there
is no need to cancel it straight away. Wait until your new account is set up
before you cancel your old direct debit.
3. If you are in credit on your
account, your money is protected and you'll be paid back. If you were in debt
to the old supplier, you'll still have to pay the money back. The new supplier will contact you to arrange a payment plan.
4. Once you have been informed of your
new supplier, make sure you're on their best tariff. You can switch suppliers
if you're not happy with your new tariff without any penalties, but don't do
this until the account has been moved over.
For more details visit:
www.citizensadvice.org.uk