Toto Energy goes bust leaving 134,000 customers without a gas or electricity provider
All recommendations within this article are informed by expert editorial opinion. If you click on a link in this story we may earn affiliate revenue.
AROUND 134,000 households have been left without a gas or electricity supplier as Toto Energy has gone bust.
Energy regulator Ofgem will now search for a new supplier to take on these customers.
Your energy supply won't be affected but Ofgem warns that you shouldn't switch until a new supplier is appointed.
The only action you need to take is a meter reading, which you can give to the new supplier.
If you've built up credit on your account, this will be protected and honoured by the new supplier.
And should you later decide to switch from the new supplier, you won’t be charged exit fees.
SPONSORED CONTENT: How to save £219 a year off your energy bills
BEAT energy price rises year after year with Switchcraft. It's free and it could save you an average of £219 a year.
- , easily compare tariffs and switch
- Once you sign up, will automatically find you a cheaper deal when a better tariff comes up, saving you time, hassle and money.
- It takes just 3 minutes. That's it!
- Click to get saving!
News UK has a brand partnership with Switchcraft.
The news comes after more than a dozen energy suppliers went under in the past two years, with Solarplicity one of the more recent casualties.
A few months ago, an expert warned that half of energy suppliers "could go bust in the next few years" due to a crowded gas and electricity market - and it will push up prices for customers.
As a result, Ofgem yesterday revealed new plans that will ensure households are better protected against failing providers.
Philippa Pickford, Ofgem’s director for future retail markets, said Toto Energy customers "don't need to worry" as energy supplies are secure and credit balances protected.
She added: "Ofgem will now choose a new supplier for you and whilst we’re doing this our advice is to ‘sit tight’ and don’t switch.
"We will update you when we have chosen a new supplier, who will then get in touch about your new tariff."
Is it safe to switch to a small energy provider?
FED-UP with sky high energy prices and poor customer service from the Big Six energy firms? Then you could save a packet by switching to a smaller firm.
Research from Which? has found customers with smaller and medium sized firms like Utility Warehouse, Flow Energy and Octopus Energy are much happier than those with the major firms - and could save a whopping £333 a year by switching.
The biggest risk of choosing a smaller provider - like Toto Energy - is that it goes bust.
But remember that if the firm does go under you won't be cut off, and Ofgem will try and get a new supplier in place as quickly as it can.
Once it has done this, the new firm will contact you - it doesn't have to honour the deal you were on with defunct firm - but under Ofgem rules any credit you have on your account is protected.
If you're unhappy with the new supplier's offer you are free to shop around for a new deal and switch - you won't have to pay any exit fees to leave.
Most read in money
Energy suppliers were last month slammed as the number of households in debt rose to more than two million.
It comes as one million pensioners are missing out on £140 a year in energy bill discounts.
We've made a round-up ways to get help paying energy bills this winter - and it could save you over £1,000.