Rebel Energy goes bust

An energy supplier with thousands of customers in the UK has ceased trading.

Rebel Energy has announced it is ceasing operations, making it the latest provider to shut down. The news comes just as energy bills have risen for millions of households.

Around 80,000 customers are affected, but there’s no need for households to worry. Energy regulator Ofgem has measures in place to ensure their energy supply isn’t disrupted. And any credit balances held with Rebel Energy will also be protected.

In the coming days, customers will be contacted by their new supplier, which will be chosen by Ofgem.

Tim Jarvis, Ofgem's director general for markets, reassured customers: "Rebel Energy customers do not need to worry. Their energy supply won't be disrupted, and any credit on their accounts remains protected under Ofgem's rules. We are working quickly to appoint a new supplier, and we advise customers not to switch in the meantime. They will be contacted in the coming weeks with more information."

Once customers have been transferred to their new provider, they can switch suppliers without any exit fees.

Announcement comes on the day energy bills rise again

The closure of Rebel Energy follows a fresh increase in energy bills. The latest energy price cap came into effect today, pushing the average annual dual-fuel bill for households without a fixed tariff from £1,738 to £1,849 - a rise of £111 per year, or around £9.25 per month.

The price cap, reviewed by Ofgem every three months, limits the price suppliers can charge per unit of energy. However, the total cost for each household pays depends on how much energy they consume.

This month's rise marks the third consecutive increase in the cap. Households are now paying £159 more per year than they did this time last year. However, bills remain £531 lower than they were at the peak of the energy crisis in early 2023.

The latest increase is due to rising wholesale gas prices across Europe.

What are your rights if your energy supplier goes bust?

Although Ofgem has introduced stricter regulations to make energy companies more financially stable, some smaller providers, like Rebel Energy, still face difficulties.

If your energy supplier collapses, wait for Ofgem to assign you a new provider before making any changes. Your new supplier will contact you directly. Once you've been transferred over, you're free to switch without incurring penalties.

In the meantime, take a meter reading and keep it safe—it will be useful when your new supplier takes over.

What happens if you’re in debt to your energy supplier and they go out of business?

If your energy supplier goes bust and you owe them money, your energy supply won't be cut off. A new supplier assigned by Ofgem will take over. You will still be liable for the outstanding balance.

The new supplier will contact you to explain how they plan to manage your account, including any debt you owe. If the new supplier doesn't take on the debt, you'll need to pay an administrator instead. 

Once the new supplier contacts you, ask them about your account balance and how you can pay off any debt.

It’s a good idea to take regular meter readings during this handover period and download any bills, just in case you need them.