Extra Energy collapse – what it means for you
Extra Energy went bust yesterday, leaving 108,000 home energy and 21,000 business energy customers without a supplier.
If you’re an Extra Energy customer, you’re likely wondering 'what happens now?' Don't worry, you won't be left without energy and there’s nothing stopping you from switching to a better deal now. Our recommendations in this situation?
- Take a meter reading to ensure you aren’t paying higher rates.
- Switch to a better deal now, to beat the energy price rises.
To switch your energy, you can call our experts on 0800 970 0077 now. We’ll find you our best deal and take care of the entire switch - so you don’t have to.
Will my gas and electricity be cut off?
No. Ofgem’s ‘safety net’ means you’ll automatically be moved to a new supplier, with no disruption to your service, and no need for you to do anything.
The only thing Ofgem suggests is that you take a meter reading now and give it to your new supplier when they get in touch.
Will I have to find a new supplier?
Ofgem will choose a new supplier by putting Extra Energy’s contracts out to 'tender'. This is where rival companies bid for your business by offering the best deal.
To protect yourself from higher energy bills, it’s sensible to compare prices now. Using a switching service like ours removes the hassle of negotiating prices and setting up the contract, as we do all of that for you.
To protect yourself against issues like this in the future, you can choose longer-term contracts and join our Do It For You service.
Will my energy plan change if my supplier goes bust?
Yes. Your old energy plan will end and your new supplier will put you on to a ‘deemed’ contract – a specially arranged energy plan that you haven’t chosen – which you can keep for as long as you need. Switching now minimising the time you spend on the ‘deemed’ (potentially higher) energy rates.
Will my energy bills increase?
Possibly. Although Ofgem will negotiate the best possible deal, there is a chance your energy bills could increase. This could be because the new supplier charges higher prices to cover the cost of taking on more customers.
Any hike in prices would be made to reflect the higher risk involved with things like customers with bad credit. Again, it's a chance to find a better deal by comparing energy prices and suppliers. You can compare home energy prices or Business Energy prices now. But, it's best to wait to switch when your new supplier has been appointed.
Will I need to cancel my Direct Debit?
No, you won’t need to cancel your Direct Debit. No more money will be taken from your account so long as you didn’t owe any money to your previous supplier. If you were in-credit with your old provider, Ofgem will look to appoint a new supplier that will pay back any money owed to you, possibly in the form of credit on your new account.
Similarly, if you are in debt, this may be taken on by your new provider, or you may have to continue to pay it back to your old supplier through the administrator.
What if I’m on a prepayment meter?
Prepayment meter users are fully covered by the Ofgem safety net. If you’ve got credit on your key, card or token, you’ll be able to use it on your new account. If you need more credit, contact your new supplier to find out what you need to do, and if you’ll need any additional equipment.
How can I protect myself from this in the future?
By choosing a long-term energy plan, you can secure your energy prices for as long as three years. This reduces your vulnerability to price rises.
We’ve also designed a service that protects you from issues like this. Our Do It For You service means we’ll find you our best price as soon as your contract is up for renewal and handle the entire switch. You don’t have to lift a finger, we’ll simply keep you updated every step of the way.
Published on: 21/11/2018