Another shockwave has hit the UK energy market—Rebel Energy, a relatively new but rapidly growing energy supplier, has collapsed, leaving around 80,000 customers without a designated energy provider. The firm’s sudden exit comes as UK households brace for yet another energy price cap hike of £111, pushing the average annual bill up to £1,849.
This development adds to the growing uncertainty and frustration among consumers, many of whom are already grappling with the cost-of-living crisis and back-to-back utility bill surges. As regulators step in to manage the fallout, customers are left wondering: What happens next? Let’s break it down.
Rebel Energy: Who Were They and Why Did They Collapse?
Rebel Energy was launched with a mission to shake up the traditional energy market by offering green tariffs and a customer-first approach. They gained traction with ethical energy practices and a focus on affordability. However, as wholesale gas prices surged and overheads became unsustainable, Rebel Energy joined a growing list of suppliers that have failed to weather the energy market crisis.
The firm’s collapse was sudden but not entirely surprising. According to insiders, the combination of rising operational costs, increased price caps, and the weight of industry levies made it impossible for smaller players like Rebel Energy to survive.
Energy Price Cap Hike: What’s Changing?
Adding insult to injury for Rebel customers is the 6.4% increase in the energy price cap, announced by Ofgem and effective from April 1st. This hike translates to an extra £111 a year on the typical dual-fuel bill, bringing the average household’s annual energy cost to £1,849.
The price cap is designed to protect consumers from the most extreme price swings, but it also sets a baseline that energy firms must adhere to—creating razor-thin profit margins. With wholesale energy prices still highly volatile due to global conflicts and supply chain issues, many smaller suppliers are finding it impossible to stay afloat.
What Happens to Rebel Energy Customers Now?
If you’re one of the 80,000 Rebel Energy customers, here’s what you need to know:
No Disruption in Supply
Don’t panic—your energy won’t be cut off. Under Ofgem’s “Supplier of Last Resort” (SoLR) system, a new energy provider will be appointed to take over your account automatically.
Your Money Is Protected
Any credit balance you had with Rebel Energy is protected. The new supplier will honor your previous balance once your account is transferred.
No Exit Fees
Once you’re switched to a new supplier, you’re free to shop around for a better deal. Exit fees will not apply, even if you’re moved to a standard tariff temporarily.
What You Should Do
- Take a meter reading as soon as possible.
- Download your latest bill or take a screenshot of your online account.
- Wait to be contacted by the new supplier before attempting to switch providers.
The Bigger Picture: A Fragile Energy Market
Rebel Energy is just the latest casualty in a widening energy crisis. Since 2021, over 30 UK energy suppliers have gone under, affecting more than two million customers. Notably, the collapse of Bulb Energy in 2021—then the seventh-largest supplier—cost taxpayers billions after a government bailout.
These failures are symptoms of a deeper issue. The UK’s energy market, once heralded for its competitiveness, is now showing signs of systemic fragility. Volatile global energy prices, outdated infrastructure, and a lack of support for smaller firms have created the perfect storm.
