Bulb energy collapse: What happens if Bulb goes down? Your rights as a customer
Martin Lewis explains how to reduce your energy bills
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The energy sector has been affected by increasing natural gas prices that have folded some companies. Energy supplier Bulb is thought to require funding to continue operations, but officials fear it could soon collapse. Accelerated contingency plans could see the company passed to a more stable supplier, its customer base with it.
What happens if Bulb goes down?
According to reports, industry regulators anticipate that Bulb could collapse within the week.
They fear it is becoming increasingly likely the company will fail to secure a rescue deal.
Industry sources told Sky News that while talks continue with several smaller suppliers, some have recently pulled out.
A Bulb spokesperson said on Friday: “Our discussions with multiple parties to secure additional funding continue to make good progress and we’re encouraged by the drop in wholesale energy prices.
“We expect the government to monitor wholesale prices and their effect on the whole industry, but ministers and Ofgem have been clear we must emerge from the energy crisis with a competitive and innovative market, rather than a return to the oligopoly of the past.”
Contingency plans would see the Office of Gas and Electricity Markets (OFGEM) step in and prevent disruption for Bulb’s customers.
OFGEM would move them to a new pre-determined supplier.
But their old tariff will end with Bulb, meaning prices could change.
Customers will exist on a “deemed” contract with their new supplier, which they can alter as they please.
Often these will cost slightly more, primarily due to companies needing to buy more energy to meet new demands.
The new supplier will contact customers with details of their contract, and they can ask to be placed on the cheapest available alternative if it is out of their price range.
They could also decide to take up with another company without paying exit fees.
They also have a right to any money still kept within their former accounts.
Anyone in credit with their former supplier can ask for a refund, but the company can still extract costs for energy used but not yet billed.
OFGEM advises people don’t act brashly amid the latest news, however.
The organisation stated people shouldn’t pre-emptively switch companies and wait for their new supplier to contact them.
Bulb’s collapse would add another chapter to the energy crisis saga, with 14 companies having gone bust between September and October.
The number of customers lost under their care would nearly match the total of the other smaller suppliers that have folded over the month or so.
GOTO Energy Limited
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