Energy Supply: Insolvency

(asked on 20th February 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of consumer redress options for customers with unresolved complaints against energy suppliers that have entered administration.


Answered by
Martin McCluskey Portrait
Martin McCluskey
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 2nd March 2026

There are two routes through which energy suppliers enter administration.

Where a supplier enters a special administration, they continue to hold a licence and to be regulated by Ofgem, including ensuring that consumers have access to redress.

Where a supplier enters a supplier of last resort process, their licence will be revoked, their customers will move to a new supplier and an insolvency practitioner will be appointed to manage the failed supplier. While their new supplier is not required to take on complaints relating to the failed supplier and the Energy Ombudsman will not consider disputes against the supplier which has ceased trading, insolvency practitioners have duties as Officers of the Court and are bound by the Insolvency Practitioner Code of Ethics.

Additionally, Ofgem has previously written to insolvency practitioners to remind them that they expect insolvency practitioners to abide by the same regulatory requirements as energy suppliers when dealing with energy consumers.

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