I wonder what will happen to the existing customer contracts. Ofgem has (rightly) indicated that another provider will take over the customers, but will they honour the contracts? Is it possible that Ofgem will somehow tout the book of contracts around and allow the book to go to the provider that is either prepared to honour the contracts or, at least, offer the best deal (just to get the customers on their books)
I know when one of the Icelandic banks (Kaupthing) went bust, ING Direct took over the book and honoured the existing fixed term rates. I know this as my wife had a fixed term depo with Kaupthing at a market leading rate (at 7%p.a. I seem to recall) and it was switched to ING Direct and she didn't lose out at all.