Utility Company bankruptcy

Dird

I read somewhere (probably a BBC article) that many customers are probably hundreds in credit & don't realise as they never switch providers.

I also just read this http://www.moneysavingexpert.com/team-blog/2013/05/13/paying-upfront-what-happens-when-an-energy-firm-goes-bust/

Have any gas/elec utility providers ever gone bust in the UK? Only bankruptcies I can find on Google are actual oil drillers rather than utility providers.

Cardew

When gas/electricity was opened up to competition there were dozens of companies who jumped in thinking it would be easy money.


When they realised the competition was intense they simply 'sold' their customer base of clients to one of the Big 6. e.g. Virgin, Sainsburys, London Electric etc.


I am not aware of any customer having lost money by a firm ceasing trading.

spiro

Normally OFGEM will try and find a company to buy the failing company but at least they haven't found a buy and they appoint a Supplier of Last Resort - https://www.ofgem.gov.uk/publications-and-updates/last-resort-supply-direction-made-gas-and-electricity-markets-authority-under-standard-condition-8-electricity-supply-licence-granted-or-treated-granted-under-section-61d-electricity-act-1989-british-gas-trading-limited

Haarlem

I cannot find confirmation if credit balances are transferred.

dogshome

When Utilities were first privatised and Ofgem controlled the prices, we in the Eastern region had TXU as our supplier

They made a BIG error in buying power on the forward market at a too higher price - Elec prices fell and Ofgem would not let TXU sell power at the price the company had bought it at, let alone make a margin

The result was that TXU withdrew from supplying Elec and Powergen took over, though TXU were still supplying gas in a short while they ceased operating completely

Through all this turmoil, no customer lost out financially

Swipe

What's the worst you'd lose in the very worst case scenario anyway? A couple of hundred quid?

Dird

Swipe wrote: »

What's the worst you'd lose in the very worst case scenario anyway? A couple of hundred quid?

In most cases but who wants to lose £300-400 in 1 day
But then if my car insurance company went bust Tomorrow I'd have lost even more