Supplier of last resort process

The Supplier of Last Resort process is Ofgem’s safety net when a licensed gas or electricity supplier fails. Ofgem appoints another supplier to take over the affected accounts. Energy continues to flow while that happens because the physical network does not depend on the failed company’s billing system.

The most useful response is to preserve evidence, take a meter reading and wait for the replacement supplier to establish the account. The process protects domestic supply credit, but it does not preserve every tariff, app feature or export arrangement.

What happens first

Ofgem says appointment of the new supplier should normally take a few days. During that period:

1. Take clear photographs of the gas and electricity meter readings.
2. Download bills, statements, tariff terms and the latest account balance while the old portal is available.
3. Keep evidence of payments, debts, export readings and any open complaint.
4. Do not start a new switch merely because the supplier has failed. Wait until the replacement account is live.
5. Do not cancel the direct debit during the transfer. Citizens Advice says the details should move to the new supplier and the old instruction should end. If it has already been cancelled, wait for the new supplier before creating another one.

Supply is not cut off during the appointment. If the failure is exceptionally large or unsuitable for a normal transfer, government and Ofgem can instead use the energy-supply-company administration regime so the existing business continues to supply customers while it is administered.

The deemed contract

The replacement supplier starts the customer on a deemed contract. It is a contract created by the transfer rather than one the customer chose.

For a domestic customer, Ofgem says the deemed tariff is covered by the energy price cap. It may still cost more than the failed supplier’s tariff, particularly if that was a fixed or specialist deal. The former tariff does not transfer automatically.

Once the replacement supplier confirms that the account has been set up, the customer can ask for its cheapest suitable tariff or switch elsewhere. Ofgem says there is no exit fee for leaving the deemed contract.

Do not confuse the appointment with a normal switch. Waiting for the new account to be created helps the replacement supplier reconcile the meter reading and protected credit. Switching away too early can make that reconciliation harder.

Domestic credit and debt

A domestic supply-account credit balance is protected by Ofgem’s safety net. The new supplier will explain whether it is applied to the new account or refunded. Keep the final statement because the failed supplier’s records may not immediately match your own.

Debt does not disappear. The replacement supplier may take it on, or the failed supplier’s administrator may collect it. Wait for written confirmation of who now owns the debt before changing payment details. Check an unexpected bill against the saved readings and statements.

Back-billing protections can still matter if a later bill includes previously unbilled energy. The protection is not a write-off for energy that was correctly billed on time and left unpaid, and exceptions can apply where the customer prevented accurate billing.

The domestic credit guarantee should not be extended to a business account. Ofgem tries to choose a replacement that will deal with non-domestic credit, but it is not guaranteed in the same way.

Smart meters and prepayment

A smart meter may temporarily stop sending automatic readings after the transfer. It still measures energy and normally works as a conventional meter, so send manual readings if the new supplier asks for them.

For prepayment:

• continue using the established top-up route while it works
• use small top-ups until the replacement account is set up
• ask the new supplier about its app, key, card or token before the old method is withdrawn
• contact the consumer advice service promptly if topping up fails or supply is at risk

Check the Priority Services Register as soon as the new account is visible. Ask to be added again if the previous registration did not transfer.

Smart tariffs, EV charging and batteries

Supplier failure can stop more than billing. A supplier-controlled EV tariff, battery schedule or flexibility service may depend on the failed supplier’s app, cloud credentials or dispatch system.

Record before access disappears:

• the tariff periods and prices used by the charger or battery
• device permissions granted to the supplier or its aggregator
• charging, battery and heating schedules
• any outstanding flexibility or smart-charging payments
• the local fallback mode if remote control stops

Do not leave old cheap-rate windows programmed after the deemed tariff begins. Update the equipment only when the replacement supplier has confirmed the new tariff and clock basis.

The manufacturer account is normally separate from the energy-supply account, but an integration between them can still stop. Revoke obsolete supplier or aggregator access after the transfer and confirm that the owner retains administrator control of the device.

SEG (Smart Export Guarantee) payments

An import supplier is appointed automatically. A SEG supplier is not.

If the failed company also paid for exported electricity, Ofgem says the generator must arrange a new SEG tariff. The new SEG licensee can pay only for exports after the new SEG contract begins, so act promptly.

Before the old portal closes, save:

• the export MPAN and meter serial number
• the latest export reading and a dated photograph
• submitted readings and accepted payment statements
• MCS and commissioning documents used for eligibility
• the SEG contract and any unpaid invoice or credit evidence

Do not assume that protected domestic import credit automatically settles a separate export account. Ask the failed supplier’s administrator how any unpaid export amount will be handled and keep that question separate from the new supply account.

Feed-in Tariff payments

Feed-in Tariff payments also do not transfer automatically. Ofgem may issue a Continuity of FIT Payments Direction so accredited generators receive payments due before the former FIT licensee stopped trading. The generator still has to agree terms with a new FIT licensee for ongoing payments. Until that happens, payments can pause.

FIT and SEG are different schemes. Preserve the accreditation, meter and reading records for the scheme actually used.

A switch already in progress

If a switch away from the supplier was already in progress when it failed, Ofgem says it should continue to the chosen supplier. Keep the confirmation and opening reading.

If the failed company was the supplier you were moving to, wait for the parties to confirm whether the transfer completed or the account remains with the old supplier. Do not create a second application while the first switch status is unresolved.

Complaints and support

The replacement supplier is not required to take over a complaint about the failed company. Raise any current-account effect with the replacement supplier, but retain the original complaint evidence. If the Energy Ombudsman was already considering the case, Ofgem says the Ombudsman will contact the customer about the next step.

If the new supplier has not contacted you after the account transfer should have occurred, use Ofgem’s failed-supplier page to identify it and make contact directly. Consumer advice is available through Citizens Advice in England and Wales and Advice Direct Scotland in Scotland.

What the safety net does not preserve

Supplier of Last Resort protection does not guarantee the continuation of:

• the old fixed or time-of-use tariff
• a supplier app or device integration
• managed EV charging or battery dispatch
• a SEG contract
• automatic FIT transfer
• an unresolved complaint about the failed company
• the same smart-meter communications from the first day

It does protect continuity of gas and electricity supply and the domestic supply-account credit balance. Treat every other contract and service as a separate check.

Related entries

• Export tariff switching across suppliers
• SEG rates across UK suppliers
• Switching mechanics across suppliers
• Smart export meter exchange timing
• Smart meter SMETS2 capability
• Supplier exit and switching for time-of-use tariffs