THOUSANDS of UK households have been warned against switching energy firms after a supplier suddenly went bust.
Rebel Energy announced on Tuesday that it is ceasing to trade, becoming the latest energy firm to go under.
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Consequently, around 80,000 customers in the UK were left without a supplier.
Despite this predicament, these customers have been warned not to switch energy company just yet.
MoneySavingExpert has outlined the key need-to-knows, including that Rebel customers’ gas and energy supply will not be disrupted.
Customers of Rebel Energy are set to be contacted by their new supplier in the coming days.
Read more on Rebel Energy
And once that new supplier is in place, the customers will next be moved to its standard variable tariff.
The Energy Price Cap governs these default tariffs, ultimately setting a maximum amount which energy suppliers can charge for each unit of energy, in addition to standing charges.
Customers are also advised to wait to be contacted by their new supplier before switching.
While this makes the account transfer process smoother, customers are free to switch provider once transfer is complete – and won’t be charged exit fees.
Any ongoing switches to Rebel Energy would go through – but the customers would be transferred to the new supplier appointed by Ofgem.
Conversely, any already started switches from Rebel Energy to a different provider would also continue.
The news came as energy bills have just rocketed up for millions.
The new energy price cap came into force, meaning the average dual fuel bill for those not on a fixed deal has risen from £1,738 a year to £1,849.
This is an increase for the average household of £111 a year, or £9.25 a month.
Meanwhile, the latest price cap rise marks the third consecutive increase.
4 ways to keep your energy bills low
Laura Court-Jones, Small Business Editor at Bionic shared her tips.
1. Turn your heating down by one degree
You probably won’t even notice this tiny temperature difference, but what you will notice is a saving on your energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving fast. This one small action only takes seconds to carry out and could potentially slash your heating bills by £171.70.
2. Switch appliances and lights off
It sounds simple, but fully turning off appliances and lights that are not in use can reduce your energy bills, especially in winter. Turning off lights and appliances when they are not in use, can save you up to £20 a year on your energy bills
3. Install a smart meter
Smart meters are a great way to keep control over your energy use, largely because they allow you to see where and when your gas and electricity is being used.
4. Consider switching energy supplier
No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you’ve let a fixed-rate contract expire without arranging a new one. If you haven’t browsed any alternative tariffs lately, then you may not be aware that there are better options out there.
Tim Jarvis, director general for markets at Ofgem, previously addressed the news.
He said: “Rebel Energy customers do not need to worry, and I want to reassure them that they will not see any disruption to their energy supply, and any credit they may have on their accounts remains protected under Ofgem‘s rules.
“We are working quickly to appoint new suppliers for all impacted customers.
“We’d advise customers not to try to switch supplier in the meantime, and a new supplier will be in touch in the coming weeks with further information.”
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