Has there actually been any suggestion of the Government bailing out the failing companies?
As I understand it, the negotiations are about funding for the large companies who will have to act as Supplier of Last Resort (SoLR) - in other words, those companies which be asked to take on the customers of the failed suppliers immediately so that they continue to receive their gas/electricity.
If I remember rightly, even before the recent huge wholesale price increases, very few SoLR honoured the cheap deals that these transferred customers previously had.
Now, with the huge rise in wholesale fuel prices, to do so would probably put them out of business too!
I presume that this is where the Government will step in with some financial backing. If they don't, I suspect that on this occasion the large companies might actually refuse to act as SoLR, potentially leaving customers of failed companies without a supply
If you do find yourself in the unfortunate position of being with a supplier that ceases trading , there are one or two things to bear in mind:
- It's best not to try to change supplier until your transfer to the SoLR is complete - doing so can complicate matters.
-As soon as the transfer is completed, look for cheaper deals.
-If you possibly can, arm yourself with records of your meter readings in case there is a dispute over either credit or debt. (Previous statements, either paper or downloaded, and a photo of the actual meter reading are well worth having!
-Leave your Direct Debit in place until it is replaced by one for the SoLR
- You should, eventually, get back any credit that you had with your old supplier, but it might take quite some time.