MILLIONS of Brits are set to face higher bills as dozens of energy suppliers have collapsed or face bankruptcy.
Bulb Energy this week become the latest to go under, joining 24 suppliers which have gone bust in 2021 so far.
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Business Secretary Kwasi Kwarteng told the House of Commons this afternoon (November 24) that Bulb customers’ direct debits will be processed as planned.
Mr Kwarteng said: “Consumer balances will be protected throughout the process.”
Will my energy bills get even higher?
Most consumers aren’t immediately affected by the collapse of their energy supplier.
But with the UK energy sector set to lose 11 more competitors this winter alone, price hikes could soon bite.
The market shock adds to the cost of living crisis already suffered by millions of Brit consumers.
Inflation affecting everyday items such as bread and petrol has had a knock-on impact in the energy sector.
Smaller firms such as Neon Reef and GOTO were unable to survive the impact of higher wholesale gas prices.
Clive Black, a retail analyst at Shore Capital, told us things are only going to get worse – and it’s also having a knock-on effect on other industries.
He said: “There’s been systemic failure in the energy industry. It feels like prices are going to rocket even further.”
“All the chickens are going to come home to roost in the form of much higher bills.”
Lower-income billpayers are set to face the worst of the cost increases, with poorer households typically spending a greater proportion of their income on necessities like energy and food.
Black added: “Lower-income consumers are set to bear the brunt of the cost of living increase. It is an additional source of pain.”
And with less competition in the UK energy sector, price are likely to rise because firms will be under less pressure to offer customers good deals.
Black said: “It’s hard to feel confident that a more oligopolistic market will put consumers first.”
Which energy companies have collapsed this year?
- Simplicity Energy (January 27)
- Green Network Energy (January 27)
- HUB Energy (August 9)
- PFP Energy (September 7)
- MoneyPlus Energy (September 7)
- Utility Point (September 14)
- People’s Energy (September 14)
- Green (September 22)
- Avro Energy (September 22)
- Igloo Energy (September 29)
- Symbio Energy (September 29)
- ENSTROGA (September 29)
- Pure Planet (October 13)
- Colorado Energy (October 13)
- Daligas (October 14)
- GOTO Energy (October 18)
- Bluegreen Energy Services Limited (November 1)
- Ampoweruk (November 2)
- Zebra Power (November 2)
- MA Energy (November 2)
- Omni Energy (November 2)
- CNG Energy (November 3)
- Social Energy Supply (November 16)
- Neon Reef (November 16)
- Bulb Energy (November 22)
What should I do if my supplier goes bust?
Your energy supply won’t be cut off so don’t panic – and you don’t need to rush into switching to a new provider, either.
The energy regulator, Ofgem, will arrange an interim supplier for you while you wait for a new supplier to be appointed.
Martin Lewis has advised affected customers “DON’T SWITCH” because they may see their bills rise up to 30%.
Bulb customers should also check their meter reading and screenshot their most recent statement, because users might not be able to access their accounts any other way.
Lewis reminded Bulb customers not to panic.
He added: “As a Bulb customer DO NOTHING.
“In terms of switching to other suppliers DO NOTHING.”
Justina Miltienyte, energy policy expert at Uswitch.com, said: “Unfortunately, we may not have seen the end of this situation.
“But concerned consumers can be reassured that their energy supply will continue as normal and credit balances will be protected.
“If you are affected by your supplier leaving the market, don’t do anything until you are moved to a new provider appointed by Ofgem.
“Wait for the dust to settle on the current situation before seeing whether there are any better deals available elsewhere.
“Any affected customers should note down their meter readings now, and again when contacted by their new supplier, to ensure their bills are accurate.”
Martin Lewis explains what you need to do about energy bills as gas prices soar
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