Which energy suppliers are going bust?

The 2026 energy market landscape

The UK energy market has seen massive upheaval over the past few years. During the peak of the energy crisis in 2021 and 2022, wholesale costs soared and caused dozens of suppliers to collapse. By July 2026, the market has largely stabilised. However, smaller companies still occasionally fail, and the landscape looks very different today than it did a few years ago.

Following the collapse of over 30 suppliers, the market is now dominated by larger, consolidated firms. Octopus Energy has seen massive growth, taking over Bulb in 2022 and Shell Energy in late 2023, which has made it the UK's largest supplier. Meanwhile, well-known names like British Gas, E.ON Next, and EDF Energy have absorbed hundreds of thousands of customers from smaller failed brands.

While the wave of mass bankruptcies is behind us, isolated failures still occur. For example, Tomato Energy ceased trading in November 2025. If you are worried about your current supplier, it helps to understand exactly what happens when an energy company fails and the steps you should take to protect your money.

What happens if your energy supplier goes bust?

The most common fear when an energy company fails is that the gas and electricity will be cut off. This is a misconception. Supply is never interrupted. The energy regulator, Ofgem, has a safety net in place called the Supplier of Last Resort process. This system is designed to protect consumers and ensure the lights stay on.

When a supplier announces it has ceased trading, Ofgem immediately steps in. The regulator runs a rapid competitive process to appoint a new supplier for all the affected customers. Ofgem chooses the new supplier based on their ability to handle the extra accounts and their commitment to protecting customer credit balances. A recent example is British Gas being appointed to take on Tomato Energy customers in November 2025.

Your credit balance is fully protected under these rules. If your account is in credit when your old supplier fails, the newly appointed supplier will honour that balance and apply it to your new account. You will not lose the money you have paid in advance.

If you are in debt to your old supplier, that debt does not disappear. You will still need to pay it off. Depending on the arrangement Ofgem makes, you will either owe the money to the new supplier or to the administrators handling the failed company's closure. You will be contacted with clear instructions on how to clear the balance.

Practical steps to take if your supplier fails

When news breaks that your supplier has gone bust, it is easy to panic. However, the best approach is to stay calm and follow a few simple steps to ensure your account transfers smoothly.

Why did so many energy suppliers fail?

The string of supplier collapses in 2021 and 2022 was driven by a combination of global wholesale price spikes and vulnerable business models. Energy suppliers buy the gas and electricity they need to supply homes on the wholesale market months in advance. This is known as hedging.

Many smaller suppliers that entered the market before 2021 did not buy enough energy in advance. When global wholesale prices skyrocketed, these companies were forced to buy energy at record high costs just to keep their customers supplied. Because the Ofgem price cap limits how much suppliers can charge households on standard variable tariffs, these companies had to sell the energy for much less than they bought it for.

Operating at a massive loss quickly drained their cash reserves, forcing them into administration. Larger suppliers with stronger financial backing and better hedging strategies were able to absorb the wholesale price shocks, which is why the market is now dominated by a smaller number of large, consolidated firms.

Recent supplier exits and market consolidation

While the chaotic market conditions of 2021 have passed, the UK energy sector continues to see significant consolidation. Several well-known brands have either ceased trading, been bought out, or restructured their businesses between 2023 and 2026.

Octopus Energy has driven much of this consolidation. After taking over Bulb in 2022, Octopus acquired Shell Energy Retail in December 2023. By March 2024, all 1.3 million Shell home energy customers were successfully migrated to Octopus, and the Shell Energy brand disappeared from the UK domestic market. Because of these acquisitions and its own growth, Octopus Energy is now the UK's largest energy supplier.

Other suppliers have chosen to restructure rather than exit entirely. In late 2025, Utilita agreed to sell approximately 40,000 of its credit customers to EDF Energy. This transfer took effect in November 2025, allowing Utilita to focus entirely on its core Smart Pay As You Go market.

Corporate takeovers have also reshaped the market. In April 2025, Good Energy was bought for £99.4 million by Esyasoft, a Dubai-based company. Following the takeover, Good Energy was delisted from the stock market, though it continues to operate under its original brand and maintain its renewable energy model.

Outright failures are now rare but not impossible. Tomato Energy ceased trading in November 2025, with Ofgem appointing British Gas to take on its customer base. Rebel Energy also collapsed in 2025, which subsequently caused its partner brand, Ebico Living, to cease operations in April 2025.

List of energy suppliers that have ceased trading

If you were a customer of one of the many suppliers that failed during the energy crisis, your account was automatically moved to a larger provider. In some cases, the company that originally took on your account has since been bought by another supplier.

For example, Ofgem originally moved customers of GOTO Energy, Daligas, Pure Planet, and Green. to Shell Energy in 2021. Because Octopus Energy bought Shell in late 2023, all those households are now Octopus customers. The table below shows the most notable supplier failures since 2021 and where those accounts ended up.

Financial rules and Ofgem protections

To prevent a repeat of the 2021 crisis, Ofgem has introduced much stricter regulations for anyone wanting to supply energy in the UK. The regulator now stress-tests suppliers regularly to ensure their business models can withstand sudden shocks in the global wholesale market.

The most significant change is the implementation of strict capital target rules, which took full effect in March 2025. These rules force energy suppliers to hold a minimum amount of capital in reserve. This financial cushion ensures that if wholesale prices suddenly spike, the supplier has enough money to buy energy without going bankrupt.

By forcing suppliers to prove their financial resilience, Ofgem aims to weed out poorly run companies before they fail. While this makes it harder for new, small suppliers to enter the market, it provides much greater stability for households.

Current energy costs and government support

Even with a more stable market, household energy costs remain high compared to pre-2021 levels. For 1 July to 30 September 2026, Ofgem's price cap for a typical dual-fuel household paying by Direct Debit is £1,663 a year. The exact amount you pay depends on how much energy you use, where you live, and how you pay your bills.^[1]

To help with the ongoing cost of living, new government support measures have been introduced. In July 2026, Prime Minister Andy Burnham announced that VAT on domestic electricity bills will be cut from 5% to 0% from 1 October 2026. The measure is funded for the 2026/27 financial year, while any longer-term action will be decided at the Budget. Northern Ireland is due to receive comparable support rather than the VAT change itself.

Targeted support also continues for those most in need. The Warm Home Discount scheme will reopen in Autumn 2026, providing a one-off rebate to eligible low-income households to help cover winter heating costs. If you are struggling to pay your bills, you should contact your supplier directly to discuss payment plans or check if you qualify for extra help.

Fixed versus variable tariffs in 2026

If you are with a stable supplier, you may be wondering whether to stick with the default variable tariff or lock into a fixed deal. Fixed tariffs have returned to the market in 2026, giving households the option to secure a set price for their energy for 12 or 24 months.

The trade-off is between price certainty and flexibility. If you stay on a standard variable tariff, your rates are governed by the Ofgem price cap. This means your bills will fall if wholesale prices drop, but they will also rise if the market spikes. A fixed tariff protects you from price increases, but you will not benefit if the price cap falls during your contract.

If you decide to fix, you should be aware of exit fees. Most suppliers charge a penalty if you want to leave a fixed contract early. For example, the Octopus 12M Fixed tariff carries a £50 exit fee per fuel, while the EDF Energy Simply Fixed 2Yr tariff and the Utility Warehouse Fixed Saver 90 both charge £150 per fuel. E.ON Next charges £100 per fuel on its 24-month fix. Always check the terms carefully before signing up.