UK Energy Incubator Hub closes and its customers move to Octopus Energy

UK Energy Incubator Hub (UKEIH) closed on 9 July 2022, and Ofgem appointed Octopus Energy to take over its customers¹. The appointment was made under the Supplier of Last Resort process, the safety net that moves households to a new supplier when their existing one stops trading¹.

The closure appears in a list of suppliers that have gone bust published by EDF, which records the old supplier, the new supplier and the date the old supplier closed¹. UKEIH is one of 38 entries on that list, which runs from GnERGY in March 2020 to Tomato Energy in November 2025¹.

Under the process, supply is not interrupted and the new supplier contacts the household with details of the tariff it has applied, the account details and how it will handle any credit or debt left with the old supplier¹. Customers are placed on a deemed contract, normally a standard variable tariff, which is a temporary arrangement¹. Any credit on the account is protected and is either transferred to the new account or paid back¹. Exit fees do not apply if the household decides to switch again¹.

"UK Energy Incubator Hub (UKEIH) | Octopus Energy | 9 July 2022"

The same list records that Avro Energy's customers moved to Octopus Energy on 22 September 2021, and that Bulb Energy went through a special administration process rather than the Supplier of Last Resort route on 22 November 2021¹. No figure for the number of UKEIH customers, the size of any credit balances or the value of the transfer has been reported in the available material.

Why it matters for households

A supplier failure changes who a household buys its gas and electricity from, but not the physical supply. The practical effect is a change of contract: the old tariff ends and a deemed contract begins, usually on standard variable terms¹. Because deemed rates can be more expensive than what was paid before, the cost of the same energy can rise without any change in how much is used¹.

For energy independence at home, the relevant point is that the account, the meter readings and any credit balance survive the change of supplier. Credit is protected and follows the customer¹. Debt is handled differently: it transfers only if the new supplier agrees to take it on, and otherwise may remain owed to the old supplier¹. Households on a Smart Export Guarantee tariff are the exception to the automatic process, because a new export tariff is not appointed on their behalf and they must arrange one themselves to keep receiving payments¹.

What happens next

No further steps specific to UKEIH customers have been reported. The general sequence is that the new supplier writes to the household with the new tariff and account details, after which the household can stay on the deemed contract or switch without an exit fee¹.

Sources1 cited

1. What happens if my energy supplier goes bust? | EDF, edfenergy.com