International News

Martin Lewis’ urgently warns 1.7m customers ‘TO DO NOTHING’ as firm collapses into administration


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.

Read our weather live blog for the latest news and updates…

  • 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.”  

  • 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.”

  • The steps to take to slash your energy bill

    ENERGY bills are on the rise and eating into the pockets of thousands of Brits.

    It’s thought that hundreds of people are overpaying on their heating bills by as much as £246, just as they’re already forking out up to a quarter more than usual.

    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.

  • Households face MORE energy bill hikes

    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.

    Read the article in full here.

  • Explained: Should I switch 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.”  

  • Who will my new supplier be after Bulb?

    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.”

  • What happens to my Bulb credit?

    Any credit you have with Bulb is protected when you are moved by Ofgem to another supplier.

    This should be protected under Bulb’s special administration too.

    Justina Miltienyte from USwitch said: “The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected.”

    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.

  • Other providers have gone bust since the summer

    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.

  • 1,000’s jobs could be lost

    According to Sky News, 1,000 jobs could be at risk with the collapse of Bulb.

    Providers have been struggling to cope with soaring wholesale energy prices.

  • Bulb seventh largest energy firm

    Bulb is the seventh largest energy firm – providing energy to one in 17 homes – but households will not be left without power while a replacement supplier is found.

    It is the biggest provider by far to go under, with several other smaller firms struggling amid rising wholesale energy costs.

    Since Bulb is so big, the regulator Ofgem cannot simply get another supplier to take on the customers, as it has done with the 22 other firms who have gone bust since August. 

  • Bills to rise from Friday

    Households will see their bills rise from £1,138 to £1,277 from Friday, when Ofgem raises the price cap – which limits how much households on default tariffs pay for their gas and electricity.

    A Bulb spokesperson said: “We’ve decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members.

    “If you’re a Bulb member, please don’t worry as your energy supply is secure and all credit balances are protected.”

  • What should you do if your energy supplier goes bust?

    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.

  • Customers can continue to log in and pay bills

    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.

  • Who will my new supplier be after Bulb?

    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: Should I switch 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.”  

  • What happens to my Bulb credit?

    Any credit you have with Bulb is protected when you are moved by Ofgem to another supplier.

    This should be protected under Bulb’s special administration too.

    Justina Miltienyte from USwitch said: “The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected.”

    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.

  • 19 domestic energy firms have failed since September

    No fewer than 19 domestic energy firms have now failed since September due to rocketing fuel costs.

    That also means consumers shouldn’t change supplier, because the new rate they’d be guaranteed would be much higher than the rate promised when they signed up with Bulb.

    Customers should also not cancel their direct debit.

  • Bulb’s international businesses in France, Spain & US to continue trading

    Bulb’s parent company, Simple Energy, will enter administration. However Bulb’s international businesses in France, Spain and the US will continue trading.

    Ofgem said: “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.”

    Bulb becomes the first energy supplier to rely on regulator Ofgem’s special administration regime.





Source link

Leave a Reply

Your email address will not be published.