Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
If your energy supplier fails, Ofgem activates the Supplier of Last Resort process -- supply continues automatically with a new supplier. In 2021-2022, 30 suppliers failed affecting 4 million customers with no supply interruptions. Credit balance recovery varies. A switching restriction period applies before you can move to a new supplier.
What Is the Supplier of Last Resort Process and What Happens to Your Supply?
Direct answer
Will my energy supply stop if my supplier goes bust?
No. Ofgem activates the Supplier of Last Resort process, appointing an alternative supplier to take over your account. Supply continues uninterrupted. You do not need to do anything. The new supplier contacts you with your new tariff details. During 2021-2022, all 4 million customers affected by supplier failures maintained continuous supply through this process.
Do nothing to maintain supply
Your supply continues automatically through the SoLR process. The new supplier contacts you -- wait for their communication.
Check the new supplier's tariff
The SoLR tariff may be above the Ofgem price cap on default tariffs in some circumstances. Check the unit rates and standing charge.
Register your credit balance claim
Contact the failed supplier's administrator and the new SoLR supplier to register any credit balance. Keep records of your last bill and payment history.
Wait for the switching restriction to end
Ofgem typically sets a period before you can switch away from the SoLR supplier.
Switch to a better tariff when eligible
Use a comparison site to find the best rate once the switching restriction ends.
| Scenario | What happens | Action needed |
|---|---|---|
| Supplier enters administration | Ofgem activates SoLR process | None -- supply continues |
| Credit balance | May be partially honoured by SoLR | Register claim with administrator |
| Switching restriction | Cannot switch immediately | Wait for Ofgem's restriction period to end |
| New SoLR tariff | Typically above market rate | Compare and switch once restriction ends |
| Special administration | Government appoints administrator | None -- supply continues under different process |
Related KT guides
Frequently Asked Questions
What happens to my energy supply if my supplier goes bust?
If your domestic energy supplier fails, Ofgem activates the Supplier of Last Resort (SoLR) process. Ofgem appoints an alternative licensed supplier to take over your supply, usually within days. Your gas and electricity supply continues uninterrupted -- you do not need to do anything. The new supplier contacts you with information about your new tariff. During 2021-2022, approximately 30 suppliers failed affecting 4 million customers -- supply continued for all of them through the SoLR process.
Will I lose my credit balance if my energy supplier goes bust?
Credit balance recovery varies by administration. Under Ofgem's SoLR rules, the new supplier typically honours credit balances verified by administrators. However, in practice credit balance recovery can be complex and may not be fully honoured in all administrations. Ofgem has consulted on requiring suppliers to ringfence customer credit balances to prevent this issue in future.
Can I switch energy supplier immediately after mine goes bust?
Not immediately. Ofgem typically requests that the SoLR supplier places customers on a protected tariff for a period before they can switch freely. After the restricted period ends, you can switch to any supplier on the market. The SoLR tariff is usually higher than market average -- switching once the restriction ends is advisable.
What is the Supplier of Last Resort process?
The SoLR process is Ofgem's mechanism for handling domestic energy supplier failures. When a supplier enters administration, Ofgem runs a competitive tender inviting other licensed suppliers to take over the customer base. The winning SoLR supplier takes over all accounts automatically. Customers are notified by post and email from the new supplier. The SoLR process typically completes within 1-2 weeks of the supplier failing.
What is the difference between SoLR and Special Administration?
Supplier of Last Resort (SoLR) is the standard process where another licensed supplier takes over the customer base. Special Administration is a government intervention for systemically important energy companies, where the government appoints an administrator to run the company temporarily rather than transferring customers. Special Administration has been used for large supplier failures where a standard SoLR transfer was not practical.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
