MONEY guru Martin Lewis has issued an important piece of advice for Bulb customers - to do nothing and sit tight as there will be no change for customers.
The MoneySavingExpert founder tweeted a few much-needed tips in the minutes after Bulb collapsed into administration.
Bulb Energy customers will not see their supply or credit affected following the announcement.
Lewis wrote: "Details sparse, but don't worry ur supply continues & almost certainly 1. [You'll] stay on the price cap, there's nowt meaningfully cheaper. DON'T switch or you may pay 30% more.
"2. Your credit's safe."
More than 1.7 million customers are affected by the collapse of the UK's seventh largest energy firm.
Since the summer, at least 12 providers have gone bust - with Utility Point and People's Energy the first of the list of small providers to go.
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The energy supplier crisis
Providers have been struggling to cope with soaring wholesale energy prices.
Wholesale gas prices have risen 250% since the beginning of the year, creating a strain on the UK energy industry that has even toppled certain providers.
At least 12 providers have gone bust since the summer, with Utility Point and People's Energy the first of the list of small providers to go.
It comes as customers who see their supplier go bust this winter could face paying £400 more to new suppliers taking over their contracts.
Will someone buy Bulb?
Other firms including Ovo, Octopus and Shell Energy have been approached to ask if they would like to buy out Bulb, but the debts are thought to be too big.
It comes as Bulb investors are no longer willing to pump more money into the firm, with debts now thought to be more than £600million.
Regulators were on standby for the imminent collapse of the company as early as last month.
A rescue deal was in the works to save the company, but The Sun reported that hopes to pull the company back from the brink were fading.
One company which was considering a takeover of Bulb reportedly claimed the firm has liabilities of around £600m, which made a "solvent takeover of the company hard to envisage".
Ofgem statement on Bulb
Following the news that Bulb energy will go into administration, an Ofgem spokesperson said: “Customers of Bulb do not need to worry – Bulb will continue to operate as normal.
“Ofgem is working very closely with Government. This includes plans for Ofgem to apply to Court to appoint an administrator who will run the company. Customers will see no disruption to their supply and their account and tariff will continue as normal.
“Bulb staff will still be available to answer calls and queries.”
Explained: What is the energy price cap?
The energy price cap offers customers a protected maximum for default tariffs over the space of six months, and is changed usually every April and October.
We saw the last price cap change come into effect at the beginning of last month, but it added as much as £139 a year onto many households' bills.
Up until then, suppliers had only been able to charge up to £1,138 on their default tariffs between April and September 2021 based on a cap that was announced in February.
The energy regulator announced in August though, that the price cap would rise from October 1 to £1,277, which is the highest since the cap first launched in January 2019.
The overall price is usually based on the price of wholesale energy and costs that companies face in supplying gas and electricity, and with the crisis still very much present, ministers have already warned that the cap could rise again next year,
Explained: Do I still have to pay Bulb bills?
Martin Lewis explained: "[Bulb] is going to continue to be your energy provider, just for now run by an administrator.
"So you will need to pay it, and Direct Debit is the cheapest way.
And Bulb customers would be wise to check their meter reading and screenshot their most recent statement, because the website is down and users might not be able to access their accounts any other way.
Lewis reminded Bulb customers not to panic.
He added: "As a Bulb customer DO NOTHING.
"In terms of switching to other suppliers DO NOTHING."
Explained: Why have Bulb customers not been transferred yet?
Typically when an energy firm collapses, its customers are immediately taken on by a new supplier. But at the moment Bulb's 1.7m customers remain.
Money expert Martin Lewis explained that because of Bulb's size, no firm is likely to take on its customers immediately - meaning it will go through the so-called Special Administration scheme.
Lewis wrote: "The Special Administration scheme likely means no firm [would] take on Bulb's 1.7m customer book.
"While the firm goes, the brand stays run by administrator.
"The 'special' means they must look at consumers as well as creditors' interest.
"In reality, for now, it's no change for customers."
Explained: Where should switched customers go for a Warm Home Discount?
Energy companies are offering the Warm Home Discount are listed below with the former firms.
- British Gas - customers who were with People's Energy, MoneyPlus Energy, PfP Energy, Bluegreen Energy and Zebra Power
- British Gas Evolve - Simplicity Energy
- EDF Energy - customers who were with Utility Point, Green network Energy
- E.ON Next - customers who were with Symbio Energy, Igloo Energy, ENSTROGA, Hub Energy
- Octopus Energy - customers who were with Avro Energy
- Shell Energy - customers who were with Green Supplier Ltd, GOTO, Pure Planet, Daligas, Colorado
Some suppliers which have taken on customers from failed energy firms - such as Utilita and Yu Energy - either don't offer the Warm Home Discount or applications have already closed.
Explained: Can I still apply for a Warm Homes Discount?
If you are Bulb customer who has already applied, you have not technically been switched yet so you can continue the process with them for the time being.
HOWEVER if you have not applied yet - or the application does not go through after you change suppliers you will need to reapply with your new supplier.
The best place to check who your new energy supplier is and whether they offer the Warm Homes Discount is the Ofgem website.
Families could face even steeper bills
Households could face even steeper energy costs as the price cap, that limits what suppliers can charge bill payers, may be adjusted more often.
The changes could affect as many as 15 million people according to the Financial Times.
Plans that Ofgem has recently published reveal that the regulator would be able to raise (or lower) the cap more often than the current interval of six months.
Households already face a blow of £2,000 in hiked bills by the end of next year, but the news means it could only be going up.
It's also lead Brits to reach for any number of ways to slash costs, as they ready themselves especially for a cold and expensive winter.
For now, Ofgem has confirmed that we won't see the cap rise again before the next set deadline of April next year.
How to deck the halls for less
Last year, the average family had their Christmas lights up from November 26 to January 6, according to Uswitch.
That's 43 days of dazzling Christmas lights burning through energy.
For a household with 200 fairy lights and a light-up reindeer - the most popular Christmas light decorations - this could add £12.70 to their bill over that period.
This is based on the lights running for six hours a night.
However, switching to more energy-efficient LED lights in the same display significantly cut the costs.
The same light display using LED bulbs would only add £1.27 to a household's bill over the same period, explains Uswitch.
This is based on average estimates for electricity prices of 18.9p per kWh from the energy regulator, Ofgem.
An LED light only uses 0.1W per bulb - 10% of the energy used by non-LED lights.
Explained: Why are energy bills rising?
Gas and electricity bills are on the rise after the energy price cap increased last month.
This pushed the amount that suppliers can charge on default tariffs up from £1,138 to £1,277.
But households have also been hit by the collapse of a string of energy suppliers.
Many small providers have struggled to cope with rising energy costs and have shut down, reducing competition in the market and leaving customers in the hands of bigger players with more expensive tariffs.
Explained: Why did Bulb collapse now?
Bulb is the seventh largest Uk energy supplier and had so far managed to stay afloat as other crumbled thanks to its investors' continued faith.
But now Bulb investors are no longer willing to pump more money into the firm, with debts now thought to be more than £600million.
Regulators were on standby for the imminent collapse of the company as early as last month.
A rescue deal was in the works to save the company, but The Sun reported that hopes to pull the company back from the brink were fading.
One company which was considering a takeover of Bulb reportedly claimed the firm has liabilities of around £600m, which made a “solvent takeover of the company hard to envisage”.
The best ways to make your home more energy efficient
Take a look, and if you’re not already applying some of these creative measures, see how much you could save.
1. Replacing an old inefficient E-rated boiler = You could save: £220
2. Loft insulation = You could save: £135
3. Not using a tumble dryer = You could save: £60
4. Turning your thermostat down by just 1°C = You could save: £55
5. LED light bulbs = You could save: £35
6. Turn appliances off at the plug = You could save: £30
Read more here.
Explained: Why are energy suppliers going bust?
Dozens of energy suppliers have gone bust in recent months thanks to the soaring cost of wholesale gas.
Energy firms can't pass these higher costs on to customers because there's a cap on prices set by the energy regulator.
While that protects households from huge bill increases now, it's unsustainable for some businesses and has sent many firms under.
Bulb is one of the bigger suppliers to collapse and an estimated 1.7million are affected.
Explained: Who is my new energy supplier?
Normally Ofgem will move customers of failed firms to a new supplier but as Bulb is in special administration, Bulb will continue to supply customers for now
Bulb could still be rescued by another company that could takeover customer's accounts.
Miltienyte said: “The administrator may decide to close the supplier down in the future, and move customers elsewhere.
"But customers will be kept informed by Ofgem and the administrators about what will happen next.”
Explained: How to figure out what energy you are using
The collapse of Bulb and others is all making us reassess what energy we are using.
There is no reason to do anything immediate as your new provider has to honour your old tariff for the time being.
But when it comes time to shop for a new tariff here’s the equation you use to work out how much your devices are costing you:
Cost = power (kilowatt) x cost of one kWh (pence) x the length of time (just the one off meal, or over a week or month.)
Bulb customers still eligible (continued)
Anyone who already applied through an energy company that's now defunct should reapply for the discount.
The cash is given out on a first come, first served basis and the earlier you apply the more likely you are to get the cash before it runs out.
Justina Miltienyte, energy policy expert at Uswitch, said: "Eligible consumers are in danger of falling through the cracks if their supplier goes bust and they are moved to another provider.
"The £140 may not be enough to balance out rising energy prices, but it will still be a lifeline to many people on low incomes this year.
"If you believe you are eligible for the discount, we recommend that you apply for it through your supplier as soon as possible.
"Even if you applied with an energy company which has since gone bust and moved to a new provider, we recommend that you re-apply with the new supplier so you do not miss out."
Bulb customers still eligible for Warmer Homes Discount
Millions of energy customers whose suppliers have gone bust have been urged to still apply for £140 off their bills.
The Warm Home Discount Scheme is designed to help those on low incomes struggling with energy bills.
Pensioners on the lowest incomes get the discount automatically but anyone else must apply to their energy supplier directly.
At least 22 energy firms have collapsed since August as companies battle against rocketing fuel prices.
But research by Uswitch shows that applications for the scheme are still open at the big six energy firms that have taken on millions of customers now without a supplier.
You are eligible if you have been switched onto that supplier - regardless of who you were with before.
Relax, your energy supply is safe
If your supplier folds, your energy won’t be cut off, so there’s no need to panic.
Ofgem will arrange an interim supplier so you won’t have to go without.
Customers affected will be contacted by the new supplier, which will be chosen by Ofgem.
With the recent fall of People’s Energy, for example, Ofgem has appointed British Gas to take on supplying the provider’s 350,000 customers.
The new firm won’t have to honour the deal you were on with your previous provider but any credit on your account will be protected.
Explained: Should I switch suppliers?
Not yet. Your supply with Bulb will continue as normal, and you're unlikely to find any better tariff out there right now.
Standard variable prices are capped and fixed tariff deals are generally higher than this at the moment, so switching is unlikely to get you a cheaper bill.
Miltienyte said: “Technically, you can switch suppliers, but it is worth bearing in mind that there are unlikely to be better deals available elsewhere.
"You’re probably better off staying put and waiting for the dust to settle on the current situation."
Explained: Why are energy bills rising?
Gas and electricity bills are on the rise after the energy price cap increased last month.
This pushed the amount that suppliers can charge on default tariffs up from £1,138 to £1,277.
But households have also been hit by the collapse of a string of energy suppliers including Bulb.
Many small providers have struggled to cope with rising energy costs and have shut down, reducing competition in the market and leaving customers in the hands of bigger players with more expensive tariffs.
Explained: How do credit balances work?
An estimated 21million households pay energy bills by direct debit, paying the same amount each month based on estimated use over the entire year.
But actual use can vary through the seasons, as more energy is generally used in winter when the heating is on and less in summer when the weather is warmer.
During the summer months customers can often end up paying more than the energy they use, leaving them with a credit balance with their energy company.
Can I access my Bulb account?
Customers should continue to be able to log into their accounts online to check their balance and download any bills.
Gillian Cooper, head of energy policy for Citizens Advice, said: “Bulb customers will be protected by the special administration process and they shouldn’t see much change to their service for now."
Martin Lewis warned customers on Twitter that they could find it difficult to access the Bulb website, as everyone affected is likely to be doing it at once, but said not to read anything into it.
Currently the website is up and running and customers can log in as usual.
Households with direct debits set up should continue to pay them as usual - don't cancel.
Recap: Bulb energy firm collapses
Bulb has fallen into administration, with around 1.7million customers affected.
It is believed that the collapse of the energy firm will cost tens of millions of pounds for taxpayers.
The provider announced the news to customers on its website, and told customers that their tariffs would not change and the price cap would still apply to bills.
Explained: Do I need to find a new supplier?
Not yet. Your supply with Bulb will continue as normal, and you’re unlikely to find any better tariff out there right now.
Standard variable prices are capped and fixed tariff deals are generally higher than this at the moment, so switching is unlikely to get you a cheaper bill.
Miltienyte said: “Technically, you can switch suppliers, but it is worth bearing in mind that there are unlikely to be better deals available elsewhere.
“You’re probably better off staying put and waiting for the dust to settle on the current situation.”
https://news.google.com/__i/rss/rd/articles/CBMiWGh0dHBzOi8vd3d3LnRoZXN1bi5jby51ay9tb25leS8xNjgxMzMwNy9idWxiLWVuZXJneS1hZG1pbmlzdHJhdGlvbi11ay1uZXdzLW1hcnRpbi1sZXdpcy_SAVxodHRwczovL3d3dy50aGVzdW4uY28udWsvbW9uZXkvMTY4MTMzMDcvYnVsYi1lbmVyZ3ktYWRtaW5pc3RyYXRpb24tdWstbmV3cy1tYXJ0aW4tbGV3aXMvYW1wLw?oc=5
2021-11-23 10:38:00Z
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