Scottish Power take on Extra Energy customers after firm’s collapse
Energy supplier Extra Energy has ceased trading, with more than 100,000 domestic and 20,000 business customers being affected.
The announcement was made following a report in The Mail on Sunday, which stated that the business was in financial difficulties.
Ofgem (The Office of Gas and Electric) reached out to the energy market, speaking with firms who could provide reassurance and assistance to Extra Energy customers.
As a result, Scottish Power has now been appointed to take on customer accounts with immediate effect, with Ofgem reporting the company will offer ‘competitive tariffs and will honour all outstanding credit balances’.
What this means for Extra Energy customers
Ofgem has advised that customers should take a meter reading and wait until Scottish Power contacts them directly, who will then explain any changes to their accounts, including amendments to tariffs.
Once the account transfer has been made, customers can still shop around for a better energy deal if they wish to do so.
What to do if your energy provider goes out of business
While it is highly unusual for business energy providers to go out of business, it is not uncommon. To help customers navigate through the upheaval, Ofgem has released a helpful guide on what to do if your energy provider goes out of business.
Here are some key highlights:
1. Your supply will not be cut off
Ofgem’s safety net protects customers’ energy supplies, so your supply is secure. Your account will be transferred to another supplier and they will call you as soon as they are appointed.
In the meantime, take a meter reading and keep this safe until you speak to your new supplier.
2. You can still shop for a cheaper deal
Your newly appointed energy provider will contact you to discuss next steps. If, after speaking with them, you feel your new tariff is too expensive, you can shop around for a cheaper deal. However, you will have to wait until this transfer is complete before doing so.
3. Credit balances for business customers are not protected
Unfortunately, credit balances are not protected under Ofgem’s safety net. Ofgem will try to appoint a supplier to cover outstanding credit, but this isn’t always guaranteed.
Therefore, you should contact your old supplier’s administrators about any outstanding credit balances.
4. How long will it take for a business energy account to be transferred to a new supplier?
While Ofgem will work quickly to resolve the issue, the process can take up to 14 days.
What should Love Energy Savings customers do if they are with Extra Energy?
The advice from Ofgem is to sit tight and wait for Scottish Power to call you and advise on next steps.
In the meantime, take a meter reading so that you can provide an accurate update to Scottish Power. They will give you information on your new tariff.
If you’d still like to speak with someone directly, call your dedicated account manager; they’d be happy to help.