Do I need a meter reading if my supplier goes bust?

The good news is that nothing about your supply is at risk. Your gas and electricity will not be cut off at any point when a supplier goes out of business¹, and Ofgem moves you automatically to a new supplier. The meter reading is not about keeping the lights on. It is about making sure the money is right on both sides of the handover: the final bill from the failed supplier and the opening bill from the new one.

Why the reading matters on the day your supplier stops trading

A meter reading is the only dated proof of how much energy you had used when the old supplier's responsibility for your account ended. Without one, the new supplier has to estimate your usage, and estimation is where billing disputes start. The same logic applies with more force when two companies are involved: the failed supplier's final bill and the replacement supplier's opening bill both need a starting figure, and only your reading supplies it.

The timing matters because the failed supplier's systems may not stay open. Once a supplier has stopped trading, you may not be able to access your account details online¹, which means the reading you can no longer submit through the old app or website has to live somewhere else: on your phone, on paper, dated. A reading you took but could not submit is still evidence. A reading you never took is nothing.

Immediate steps to take when you find out

The steps are short, and the order matters less than the date on the record.

1. Take readings for both gas and electricity as soon as you are aware your supplier has ceased trading, because you will need them for the new supplier².
2. Photograph each meter display, making sure the digits and the date are legible.
3. Try to submit the readings through the old supplier's app or website, but don't worry if the systems are already down; your dated copy is what counts.
4. Wait to be contacted by the new supplier, then give them the readings and the date they were taken.
5. Don't switch tariff or supplier while your account is being moved to the new supplier¹.

That last point is worth dwelling on. The urge after a collapse is to look for a better deal immediately, but the account has to land with the Supplier of Last Resort first. There is no requirement to stay with a Supplier of Last Resort, but it's best to wait until your account is set up with them before switching². Switching mid-transfer is what creates the mismatches that a meter reading exists to prevent.

If you were already mid-switch when both suppliers failed, the rule is: if the switch had been completed, you go to the Supplier of Last Resort for the supplier you had decided to switch to; if not, you go to the Supplier of Last Resort for the supplier you were leaving².

The way your meter reading feeds into the Supplier of Last Resort process

When a supplier fails, Ofgem appoints a Supplier of Last Resort (SoLR) to take on its customers. Ofgem's criteria for choosing one include whether the supplier can take on the new customers quickly and efficiently without significantly impacting its existing customers, whether it can secure enough gas and electricity without significant cost, and whether it will voluntarily reimburse customers' credit balances². The last of those is why your reading matters financially: the credit you are owed is calculated from actual usage, and an up-to-date meter reading is what lets the supplier calculate the actual amount of credit you're entitled to³.

The new supplier builds your account from the records it receives, and your reading is the anchor point. Energy supply will not be cut off at any point in the event your supplier goes out of business², so the transfer is administrative rather than physical, and the reading is the hinge between the two companies' versions of your usage. For prepayment customers the protection is stronger still: prepayment credit balances are protected, money loaded onto the meter can be used as normal, and the new supplier sends new keys or equipment as a priority².

Your account, balance and final bill under the new supplier

Once the transfer completes, your relationship is with the new supplier, and the failed supplier's records arrive with it. Information transfer may take a while, so keep your own copies of bills, statements and your dated meter reading⁴. If you had a complaint open with the old supplier, you can discuss it with the new supplier when they contact you: they will review the complaint and check whether it is still relevant or whether it can be closed¹.

If the final bill from the failed supplier looks wrong, your dated reading is the evidence you use. Contact your new supplier to report the problem⁴. Where the dispute concerns a credit balance, the calculation depends on an up-to-date meter reading³, which is another reason the photograph taken on day one earns its keep weeks later.

For households on a heat network rather than a mains supply, the same estimation risk applies: a supplier is allowed to estimate if it can't take a meter reading, for example if it can't get to the meter or no reading has been given in a while⁵. Residents who pay a landlord or site owner by meter readings cannot switch suppliers themselves⁶, so the reading is the protection they have.

Does a smart meter change anything?

A smart meter normally sends readings automatically to your supplier, which is why you get more accurate bills and don't need to submit readings manually⁷. A supplier failure interrupts that arrangement in a specific way: your meter may not work in smart mode when you move to the new supplier, and you may need to take meter readings manually and submit them to your new supplier instead¹.

The risk is highest with the first generation of smart meters, SMETS1. If you have a SMETS1 meter, you might need to send your meter readings to your old and new energy suppliers when you switch⁸, and SMETS1 meters could temporarily go dumb and lose their ability to send automatic readings after you switch energy supplier⁹. Having a smart meter does not stop you from switching supplier, and smart meters should make switching quicker because they can send information to a new supplier instantly¹⁰, but "should" is not "will", and the safe assumption during a supplier failure is that you will be submitting readings by hand for a while.

If your smart meter stops working at any point, contact your supplier: they are responsible for maintenance and will fix or replace your meter as needed¹¹. A smart meter may stop recording the energy you use, or may no longer send readings to your supplier¹², and either fault means your own readings become the record that matters.

What if you can't submit a reading before the systems go offline?

The reading still counts even if it cannot be submitted straight away. The submission channel is not what gives a reading its force; the dated figure is. Once the old supplier's website and app are closed, the reading can be held until the new supplier makes contact, then submitted with the date it was taken. If you haven't submitted a reading for a long time, or you're unable to take your own meter readings, your supplier may send someone to your property to read the meter¹³, but that cannot be relied on during the disorganised weeks after a collapse.

If you suspect the meter itself is faulty rather than simply unread, the process has fixed deadlines. Tell your supplier and they have 5 working days from the day you tell them to investigate, take action to fix the problem and offer to confirm in writing what they've done¹⁴. Under the smart meter regulations, within 5 working days of receiving a notification the supplier must complete an initial assessment, take appropriate action and offer to confirm in writing¹⁵. In a supplier failure, that obligation passes to the new supplier once your account is set up.

Will your direct debit continue?

Not by itself. When you switch supplier, you will be asked to set up your direct debit ahead of the date the new supplier takes over, and the old direct debit is cancelled after paying any final bills¹⁶. A supplier failure follows the same shape: the new supplier will ask for payment details when it sets up your account, and the old mandate is not cancelled until the final bill from the failed supplier is settled.

One cost consideration: you may lose any discount you currently have for paying by direct debit if you stop⁴. Since the new supplier's opening bill will be built from your meter reading, paying it by direct debit keeps the account on an even footing while the transfer settles. If your account was in debit with the old supplier, you can still switch energy suppliers, but you will receive a final bill which must be paid in full¹⁷.

Where this leaves the household

A supplier collapse is one of the moments when a household sees exactly how dependent it is on other people's paperwork: a company's billing system, a transfer of records, an appointment made by the regulator. The meter reading is the small act of independence inside that process. It is the one document of the transfer that you own, dated by you, that neither company can reconstruct without you.

The limits are real. You cannot choose your Supplier of Last Resort, you cannot speed up the transfer of your records, and if your smart meter goes dumb you are back to manual readings for as long as the new supplier takes to restore them. What the reading buys you is accuracy: a final bill and an opening bill that both start from a figure you can prove. For a household working towards greater energy independence, that is the pattern worth noticing. Every step that puts a verified number in your own hands, whether a meter reading or a generation figure from your own solar panels, reduces the number of things a stranger's failure can get wrong on your behalf.