Customers of failed energy suppliers advised to wait before switching

Customers of gas and electricity suppliers that collapsed this week are being reminded that there is nothing to stop them from switching to a new supplier once the dust settles.

Utility Point and People’s Energy both ceased trading less than a week after PfP Energy and MoneyPlus Energy went out of business.

Ofgem has appointed British Gas to take over the PfP and MoneyPlus customer accounts, and half a million other households will be moved to a new energy supplier as a result of this week’s two failures.

Energy Helpline’s director of energy, Tom Lyon, said: “It’s important for customers to wait until they find out who their new supplier will be before trying to switch to a new supplier – which should only take a few days.

“While you’re waiting, it is worth grabbing your meter readings now, and then again when you’ve been contacted by your new supplier, to ensure your bills will be accurate.”

Armed with your new supplier, and pricing, it is worth running a quick comparison to see if you can find a tariff that offers better value for money, and you won’t be charged any exit fees to leave your assigned supplier, he says.

Seven energy suppliers have failed in the past year, including five within the past five weeks, as the market price for gas and electricity has reached an all-time high.