What should you do if your business energy provider collapses?
In the past few month, several energy providers have collapsed as rising wholesale gas prices threaten the sector.
A number of factors have contributed to soaring energy prices, including high global demand, as well as maintenance issues and lower solar and wind energy output.
Dermot Nolan, former Ofgem chief executive, said the increases were the result of depleted stocks following a cold winter last winter, reduced supply from Russia, and increased demand for liquefied natural gas from the Far East.
While rising wholesale prices sparked many of the failures, firms also say that Ofgem’s energy price cap has prevented them from passing these price increases on to customers, exacerbating the issue. A new cap will be implemented in April, sparking fears that the cap for typical household consumption alone could hit £1,600 or more.
Which energy suppliers have collapsed?
28 energy firms have collapsed so far in 2021. The most recent non-domestic suppliers to go bust include CNG Energy, MA Energy, Ampoweruk, Bluegreen Energy Services, Daligas, and Symbio Energy.
What should you do if your business energy supplier collapses?
As the energy regulator, Ofgem is responsible for finding you a new business energy provider if your supplier collapses. Your supply will be protected and you should be switched within a few days.
Ofgem and Citizens Advice both recommend taking a meter reading and downloading any bills, before waiting for your new supplier to get in touch.
When your new provider gets in touch, ask about the business tariffs available to you with them. Before you agree to a new contract, you can also choose to shop around and switch if you are able to, without incurring exit fees.
It is not recommended to switch energy suppliers, or attempt to switch, before you’re assigned a new provider.
How can a business energy consultant help?
Although it is always encouraged to shop around, in the current market a better offer may not be available to you. In particular, people already on fixed business energy deals are advised to stay put before higher price caps come into force in April. Those coming to the end of a fixed deal are likely to be moved onto higher standard tariffs.
Therefore, instead of searching for a cheaper business energy deal, the Energy Saving Trust recommends simple changes to our usage and energy habits, which could help offset the current price rises.
Enexus Energy develops bespoke, innovative strategies to optimise the way your business purchases, generates and consumes energy.
We can help you take proactive measures for your 2022 business energy contracts. We can track the market on your behalf, source the very best prices and suggest alternative contract structures to ensure you buy energy in the most cost-effective way. We can also help you reduce consumption and guide you to lasting savings on your energy costs.
To see how we can help, please get in touch:
Tel: 01253 966 960