If you have watched the news or read the news, then you surely have heard about many of the energy providers here in the UK going bust, or going out of business.
The companies going out of business so far are:
- People’s Energy
- Utility Point
- PfP Energy
- MoneyPlus Energy
- Avro Energy
- Green Supplier LTD
It is estimated that these companies going bust will affect 1.5 million households, possibly more.
Why Are These Utility Suppliers Going Bust?
In its simplest terms, money. The sellers of wholesale energy raised their rates, and since there was a cap on what the energy providers could sell their services for, they lost money.
Yes, there are whole sale sellers of energy, yes these other companies act a “middle man” of sorts, and yes there is a cap on how much an energy provider can sell their service for.
Which made the market very competitive. Some providers would sell energy just a few pennies over their cost in the hopes that volume would make up profits. The more customers, the more they could earn.
So What Happens Next?
If you are affected by your utility supplier going bust, you will still receive gas and electricity, and Ofgem will move your account to another supplier. Who will then contact you.
Ofgem is the regulator for the gas and electricity market in Great Britain.
It may take a few weeks to be contacted by the new supplier, but you will still have power.
It is recommended that you write down your meter readings, and also take photos of them, and also keep any bills you have or download any bills you have online.
Does this mean your gas and electricity bills will go up?
Gas and electric prices have risen, and that is why these low cost companies have gone under. The odds are any supplier you get moved to will cost you more. No one can say how much more, but you can always shop around again.