BULB is the latest energy firm to collapse, leaving nearly two million customers in limbo.
Here’s what you need to know if you’re a Bulb Energy customer and what happens to your energy bill.
1
Dozens of energy suppliers have gone bust in recent months thanks to the soaring cost of wholesale gas.
Energy firms can’t pass these higher costs on to customers because there’s a cap on prices set by the energy regulator.
While that protects households from huge bill increases now, it’s unsustainable for some businesses and has sent many firms under.
Bulb is one of the bigger suppliers to collapse and an estimated 1.7million are affected.
What happens to my energy supply if I’m a Bulb customer?
Bulb customers will find their gas and electric supply will continue as normal.
The regulator Ofgem ensures that no one will ever be left without energy if any supplier goes bust.
Usually they will find you a new supplier instead and the advice is to sit tight until this happens.
But, as Bulb is so big Ofgem has placed it in special administration.
That means that it will continue to operate as normal and customers don’t need to do anything.
Gillian cooper, head of energy policy for Citizens Advice, said: “Bulb customers will be protected by the special administration process and they shouldn’t see much change to their service for now.
There will be no change to tariffs and the energy price cap will still apply to bills.
Customers should continue to be able to log into their accounts online to check their balance and download any bills.
Martin Lewis warned customers on Twitter that they could find it difficult to access the Bulb website, as everyone affected is likely to be doing it at once, but said not to read anything into it.
Currently the website is up and running and customers can log in as usual.
Households with direct debits set up should continue to pay them as usual – don’t cancel.
What happens to my Bulb credit?
Any credit you have with Bulb is protected when you are moved by Ofgem to another supplier.
This should be protected under Bulb’s special administration too.
Justina Miltienyte from USwitch said: “The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected. “
An estimated 21million households pay energy bills by direct debit, paying the same amount each month based on estimated use over the entire year.
But actual use can vary through the seasons, as more energy is generally used in winter when the heating is on and less in summer when the weather is warmer.
During the summer months customers can often end up paying more than the energy they use, leaving them with a credit balance with their energy company.
Should I switch supplier?
Your supply with Bulb will continue as normal, and you’re unlikely to find any better tariff out there right now.
Standard variable prices are capped and fixed tariff deals are generally higher than this at the moment, so switching is unlikely to get you a cheaper bill.
Miltienyte said: “Technically, you can switch suppliers, but it is worth bearing in mind that there are unlikely to be better deals available elsewhere.
“You’re probably better off staying put and waiting for the dust to settle on the current situation.”
Who will my new supplier be after Bulb?
Normally Ofgem will move customers of failed firms to a new supplier but as Bulb is in special administration, Bulb will continue to supply customers for now
Bulb could still be rescued by another company that could takeover customer’s accounts.
Miltienyte said: “The administrator may decide to close the supplier down in the future, and move customers elsewhere.
“But customers will be kept informed by Ofgem and the administrators about what will happen next.”
Energy price cap rise could leave more than five million households in the cold
We pay for your stories!
Do you have a story for The Sun Money team?
Email us at [email protected]
