Business energy customers: what should I do if my energy supplier goes bust?

With the number of energy suppliers going out of business rising significantly over the last 12 months, Newcastle-based energy claims expert, Business Energy Claims, is addressing concerns for business energy customers to protect them if their supplier goes under.

What will happen if my supplier goes under?

In the first instance, Ofgem will appoint a new supplier – referred to as a Supplier of Last Resort, “to ensure that all customers continue to receive supplies of gas and/or electricity”.

Even as a business energy customer with less protection than domestic consumers, your energy won’t be cut off at any point in the event your supplier goes out of business, and your new appointed supplier should honour any credit you may have built up under Ofgem regulations.

As it may take a while for your account to transfer, you should take meter readings as soon as you are made aware that your supplier has ceased trading to provide to your new supplier as soon as possible.

Will I pay the same as I did with my old supplier?

Ofgem will appoint a new supplier for you, though it is not guaranteed that the new tariff will be the same and your prices may increase as a result.

Unfortunately, any fixed rate tariffs you were previously on will end as soon as you are switched to your appointed supplier, and you will be placed on a standard variable tariff.

Added to this, in recent months, it has also been made more difficult for non-domestic customers to switch suppliers and secure better deals.

However, in this situation, your new appointed tariff will not have any exit fees, so you should be able to compare and switch suppliers if you aren’t satisfied and there is a suitable option to switch to.

Regardless of your appointed or chosen supplier, it is increasingly important for business energy customers to ensure that they are being offered the appropriate tariffs and are being charged correctly once their contract starts.

This is especially true amongst small and medium businesses, where energy suppliers are often charging too much and left unchallenged.

Have you been mis-sold your energy contract?

Business Energy Claims are urging businesses to hold their suppliers to account and continue to challenge any aspect of their energy contract that does not sit right with them. 

The Newcastle-based energy litigation specialists are highlighting the need for businesses to question the way in which their energy contracts were sold and handled, with an estimated 2 million UK businesses potentially entitled to compensation for energy mis-selling.

Head of Claims, Hannah Ramshaw, said: “In recent years many businesses have faced the stressful situation of their supplier ceasing trading.

“If you happen to find yourself in this situation, you should receive a full explanation as to the next steps, a breakdown of your new energy rates and the options available to you.  

“If you feel that you did not receive the correct level of support from your new supplier or that your new energy bills were higher than anticipated, please contact us as we may be able to help your business recover money as a result of your experience.”

Business Energy Claims has a team of energy and legal experts helping businesses to recover hidden commissions and losses from the mis-selling of energy contracts.

If you believe you’ve been mis-sold your energy contract and think you’re entitled to compensation, call 0800 689 4259 or get in touch.

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