Energy suppliers across the UK are starting to go broke and the one thing we are guaranteed is rising household bills.
NOTE: If you’re in credit with your old supplier, as many of us are through the summer months), your money is protected and you’ll be paid back (eventually) its recommended to take screen shots of accounts to save any confusion in the possible switch. And sadly If you’re in debt, you’ll still have to pay the money you owe.
Is this a ”winter of discontent” ahead for many of us?
“There is no question of the lights going out, of people being unable to heat their homes. There will be no three-day working week, or a throwback to the 1970s,” Energy Secretary Kwasi Kwarteng told the BBC.
The government said the UK has a “diverse and secure” range of suppliers. Norway in particular is increasing its exports from October. These are delivers to the U.K via pipelines, meaning the necessity for (expensive gas storage) has dropped
However, demand for gas is rising across Europe, and some fear the UK could be physically – and perhaps politically – at the back of the queue.
The government stresses it’s “not complacent”.
And, if needed, it does have the power to impose emergency measures, such as ordering big industrial customers to temporarily stop using gas.
But the biggest factor – the weather – is beyond its control. Our best hope for avoiding problems is a mild, if breezy – and wind power-friendly – winter.
Where?
The U.K imports over half of our gas, due to us producing less and using more – much of it from Norway, and a considerable amount from the Netherlands and Belgium, our ex-European partners.
Why ?
A perfect energy storm has been brewing during 2021.
A cold winter around the world last year sent gas demand rising, depleting stores.
Those reserves would normally be replenished over the summer. But output dropped because many major producers were catching up with maintenance postponed during lockdowns.
Meanwhile, calm weather reduced the amount of electricity generated by wind power.
As a result, wholesale gas prices have more than quadrupled over the last year.
The UK has been badly hit because it’s one of Europe’s biggest users of natural gas – 85% of homes use gas central heating, and it also generates a third of our electricity.
What?
If your energy provider goes bust, you won’t suddenly stop receiving gas and electricity.
Your account will be moved to a new supplier by energy regulator Ofgem – although this may take a few weeks.
Unfortunately, you may end up on a more expensive tariff with a new supplier but prices are expected to rise again.
Citizens Advice say that making a note or taking a photo of your meter reading and downloading any bills while you wait for your new supplier to contact you, getting evidence to save on possible errors.
There’s no need to cancel any direct debits straight away. Instead you can wait for your new account to be set up before cancelling the existing arrangements.
The new supplier will contact you to set up a new payment.
This is IMPORTANT: If you’re in credit with your old supplier, your money is protected and you’ll be paid back (eventually) its recommended to take screen shots of accounts to save any confusion in the possible switch. And sadly If you’re in debt, you’ll still have to pay the money you owe.