MSE News: Extra Energy ceases trading - here's what you need to know

Former_MSE_Callum

Extra Energy, a small supplier with about 108,000 domestic customers, has ceased trading - but if you're a customer your supply will continue as normal...

Read the full story:
'Extra Energy ceases trading - here's what you need to know'

Click reply below to discuss. If you haven’t already, join the forum to reply.

beardiedog

And another one bites the dust.

[Deleted User]

And if you haven't read the very short article, the main piece of advice of Extra Energy customers is

I'm an Extra Energy customer - what should I do?
If you're an Extra Energy customer, Ofgem's advice is:

Do not switch to another energy supplier.
Take a meter reading, ready for when your new supplier contacts you.
Ofgem says this will make the process of transferring customers over to the chosen supplier, and paying back any outstanding credit balances, as smooth as possible.

More information will follow from your new supplier in the coming days.

brewerdave

As more of these small providers go to the wall, one wonders HOW the regulator is going to motivate any of the remaining suppliers to become SOLR - I suspect that Octopus have got their fingers burnt with all the problems with IRESA customers and First Utility appear to be having issues with Usio's accounts!!

System

brewerdave wrote: »

As more of these small providers go to the wall, one wonders HOW the regulator is going to motivate any of the remaining suppliers to become SOLR - I suspect that Octopus have got their fingers burnt with all the problems with IRESA customers and First Utility appear to be having issues with Usio's accounts!!

They can just appoint one!

Rosabear

Awful company!

brewerdave

Hengus wrote: »

They can just appoint one!

Surely that can't be true??:eek:
For instance, Octopus claimed that they had to employ and train up extra staff to cope with the 90,000 Iresa customers - I don't see how OFGEM could impose such a condition on a third party

System

The National scandal here is that we are all paying through the Consumer Levy for Ofgem’s long held (but recently changed view) that it is not the Regulator’s business to carry out any business due diligence before it awards a Supply Licence.

System

brewerdave wrote: »

Surely that can't be true??:eek:
For instance, Octopus claimed that they had to employ and train up extra staff to cope with the 90,000 Iresa customers - I don't see how OFGEM could impose such a condition on a third party

The normal process, as I understand it, is that Ofgem launches an auction to seek out a supplier that will pay something towards the bailout: it is after all gaining extra customers. In the event that no one bids, then Ofgem will appoint a SoLR that will claim back all the extra costs of supporting the inflow of customers. Bear in mind, that some of the Big 6 have reportedly lost 100ks of customers this year. I will try and dig out the source of my understanding.

https://www.ofgem.gov.uk/system/files/docs/2017/09/solr_revised_guidance_final_21-10-2016.pdf

Quote: A trade sale of a failing supplier remains our preferred means of ensuring continuity of supply. There may, however, be circumstances where a trade sale is not feasible. This document sets out our process for deciding whether and how to exercise our powers to appoint a SoLR or if this is not feasible to seek the Secretary of State’s consent to apply to the court for an energy supply company administration order. unquote

Merlin139

Cannot believe people are still posting excellent 5* reviews of Extra Energy on Trustpilot. All verified by the company. :rotfl:

kerri_gt

Hardly surprised, took nearly a year of chasing for them to generate and take payment of a final bill. Couldn't organise a p*ss up in a brewery.