DO NOT switch now – sit stuck and wait for the new supplier to contact you
If you are a People’s Energy or Utility Point customer:
- Do not switch to another provider until a new one has been appointed. Ofgem says you should wait to be contacted by the new supplier in the coming weeks, otherwise you could run into problems with your Switch as they are mass porting customers.
- Take a meter reading. It is useful to have it ready when your new supplier contacts you. You should do this whether you are a credit meter or a prepay customer.
- When a new supplier is appointed, you will likely switch to a new deal – which may cost more. Ofgem says it is likely that your current contract will end and you will be transferred to a special “recognized” contract (a plan that you did not choose). These tend to be expensive, so it is possible that your bills will go up.
- If you’ve moved, see if you can save by moving. You can ask the new provider to switch you to a cheaper tariff, but you can also switch to another provider without any exit fees. So it’s best to do an overall market comparison – which you can do on Cheap Energy Club – so that you can find the best deal for you.
The energy loan is protected – so you do not lose any money that is owed to you
People’s Energy or Utility Point may owe you money when your account has accumulated funds. In this scenario, the supplier commissioned by Ofgem will repay you all monies owed to you.
If you owe money, you probably have to pay it anyway. Payments go to either People’s Energy or Utility Point (depending on who you are with), the administrator, or the new supplier. The new supplier will tell you how this works after the takeover.
If you are in the process of switching, your switch will still take place
If you have already started switching from either People’s Energy or Utility Point, you will still be redirected to the new provider you have chosen. You shouldn’t have to do anything. Your direct debit with your current supplier should be automatically canceled, but check anyway and if not, cancel it manually after the switch is complete.
If you are about to switch to People’s Energy or Utility Point, the switch should go as planned, although you will then be automatically switched to the new supplier that Ofgem will appoint.
There’s no need to cancel your direct debit, but it’s okay if you’ve already done so
You don’t have to cancel your direct debit immediately. Ofgem says your new supplier will be in touch shortly to explain how they will charge your account, including any direct debit schemes.
Ofgem says you can cancel your direct debit before the new provider contacts you if you want. If you’ve already canceled there is no need to reactivate it and your new supplier will explain what to do as soon as they get in touch with you.
What does Ofgem say?
Ofgem Retail Director Neil Lawrence said, “While the news that a supplier is out of business can be worrying, Utility Point and People’s Energy customers needn’t worry. Under our safety net, we will ensure their energy supplies If you are a domestic customer with funds in your Utility Point or People’s Energy account, your account is protected and you will not lose any money owed to you.
“Ofgem will select a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and not change in the meantime. You can rely on your energy supply as usual. We will You will inform us when we have selected a new provider who will then contact you regarding your new tariff. “