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Extra Energy goes bust - what next?
If you’re a customer of Extra Energy, you’ll no doubt be wondering where to go from here. Extra Energy ceased trading last week with assurances that customer supplies will continue as normal – for now.
Energy regulator Ofgem will choose a new supplier to take on Extra Energy's customers soon, and this supplier will contact these customers shortly after being appointed.
Extra Energy was domestic supplier number 5 to fall away far this year – joining Iresa Energy, Future Energy, Usio Energy and Gen4U. It’s been swiftly followed by Spark Energy, who ceased trading just days later, leaving 290,000 customers without a provider.
What happens to my tariff now? Will my bills increase?
Extra Energy customers are now technically out of contract – which means no exit fees.
Ofgem states that your current contract – either on a fixed or a variable tariff – will end when you join a new supplier, and you'll be placed on what's known as a 'deemed' tariff. Worryingly, these are often more expensive. Business customers credits are also unprotected – this will need to be managed by the administrator.
What should I do?
Once Ofgem’s new supplier makes contact, ensure that you check if the deal you are being offered is the cheapest available to you.
Get in touch with XLN to find out what deal we could offer you - our rates are exclusive for XLN customers and we’re able to tailor rates from 12 months to up to 4 years. And remember, as you’re out of contract, you won't be charged exit fees if you decide to switch.
What does Ofgem say?
Ofgem's interim director for future retail markets Philippa Pickford said: ‘If you are an Extra Energy customer, under our safety net, we will make sure your energy supplies are secure. We will also ensure that domestic customers' credit balances are protected.’
Ofgem recently announced that it will be tightening licensing rules for new energy suppliers that join the market.
Under their updated guidelines, companies will have to show they have the requisite financial resources and can meet their customer service obligations before they are allowed to trade.
While the energy market appears to be in a state of flux at the moment, one thing is still certain - at XLN you can be certain of a great deal and world class customer service. Head to XLN Energy to find out more about what we'd be able to offer you.