Ofgem is the Office of Gas and Electricity Markets, a non-ministerial government department who independently monitor the energy market. When a supplier stops trading. Ofgem ensures that the supply of energy continues to customers. They call it the Ofgem safety net. Ofgem gives responsibility to a new supplier for the customers of the closed energy company. They do their best to ensure that you do not notice the transition. We recommend you visit the Ofgem safety net site by clicking here.
What about my contract?
When Ofgem replaces your current supplier with a new supplier all old tariffs will end. You will be transferred onto a ‘deemed’ contract. A ‘deemed’ contract is one that you, as a customer, have not chosen. Very often your prices may go up as a result of the above. Ofgem tends to accept this because the new supplier is assuming the risk and responsibility with new as a customer from a failed supplier. Please note that Ofem does not protect business customers’ credit balances. It is your responsibility to contact the insolvency company to get your money back. When Ofgem have replaced your business energy provider, the new supplier contacts you and provide guidance on outstanding credit balances. Once you have been contacted by your new supplier you are then free to shop around for a better deal (it is best not to switch suppliers during the transition). You can use EnergyBillKill to switch easily.