My energy supplier went bust - is my fixed tariff still valid?
I have tried to keep my energy bills low and found a supplier that offered a good fixed deal, but it recently went bust.
I didn't think much of it because I knew a bigger supplier was likely to swoop in, but now I'm worried the previous cheap fixed tariff I had probably won't be honoured.
Will I have to pay more with a new supplier?
Angharad Carrick, of This Is Money, says: The energy crisis in 2021 exposed weaknesses in the domestic energy market, forcing several small suppliers to close.
Since then, regulator Ofgem has tightened rules, requiring suppliers to hold more capital and to ringfence customer credit to prevent further collapses.
Supplier of last resort: If your energy firm folds, Ofgem will transfer your account and credit
It has meant there have been very few high-profile casualties, until a handful of smaller suppliers announced their closure this year.
Thankfully, Ofgem has rules in place that mean customers' gas and electricity supply is unaffected if their supplier closes.
What is the supplier of last resort scheme?
As you say, you knew another supplier would step in and take over from your previous supplier.
This is because of Ofgem's Supplier of Last Resort scheme, which automatically switches customers to a new supplier.
In exceptional circumstances, Ofgem may ask a court to appoint an administrator to run your existing supplier rather than move you to a new one.
Most importantly, your new supplier will honour any credit that you had built up with your now-closed supplier under Ofgem's rules.
The supplier of last resort has to be able to take on new customers quickly, without affecting their existing customers.
This is why bigger suppliers like British Gas and Octopus Energy tend to be the suppliers of last resort.
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Will you be able to have the same fixed deal?
In your case, you've moved around energy suppliers to try and get the best fixed deal.
Your new supplier will honour your supply and credit balance, so I understand why you'd ask whether they'd also honour your fixed tariff.
Unfortunately, this doesn't fall under the rules of the supplier of last resort scheme.
When you're moved over to the new supplier, you will be placed on a standard variable tariff, which means you'll be protected by the price cap.
You can opt to take out a fixed deal with your new supplier, or you can switch to another supplier that might offer a better deal.
It's advised that you wait until your account and any credit built up has been transferred to the supplier of last resort, before you think about switching to another supplier.
Until then, you'll only be protected by the price cap. We asked an energy expert for their advice.
Ben Gallizzi, energy expert at Uswitch.com, said: There's no need for households to be alarmed about the state of the energy market as only two suppliers have ceased trading this year, and together they served just over 100,000 households.
There are now much tighter licence conditions in place to stop the flurry of small provider collapses we saw during the energy crisis.
If your provider does cease trading, your energy supply will continue as normal and your credit balances will be protected as you move to what's called a Supplier of Last Resort.
Anyone on a fixed rate contract when their provider ceases trading will be automatically moved on to a standard tariff with their new supplier, which means they will be paying more for their energy.
Customers in this position are free to switch to a new fixed deal when the process of moving them over has been completed.
If your provider does cease trading, it's a good idea to note down your meter reading – whether you've got a smart meter or not – to ensure your bills and account balance are accurate.
What are the best fixed deals?
Angharad Carrick says: The price cap is expected to increase from 1 January and Ofgem and other energy experts advise households to move to a fixed tariff to save over £200 on their bills.
Ecotricity is offering a 12-month fixed tariff with an average annual bill of £1,527, representing a saving of £231 against the January price rise.
Outfox Energy is also offering two 12-month deals, which offer savings of £217 and £216 (with its Family Advantage deal).
