Extra Energy collapse is the sixth this year
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Another small energy supplier – Extra Energy – has ceased trading, the company has announced.
It is the sixth energy supplier to go out of business since the start of the year.
The company had attracted just 108,000 domestic customers and 21,000 business customers.
However the regulator, Ofgem, assured customers affected that their energy supplies will continue as normal, and any credit balances will be protected.
In due course a new supplier will be appointed by Ofgem, and customers will be transferred directly.
“If you are an Extra Energy customer, under our safety net, we will make sure your energy supplies are secure,” said Philippa Pickford, Ofgem’s interim director for future retail markets.
“Ofgem will now choose a new supplier and ensure you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch.
“You can continue to rely on your energy supply as normal. We will update you when we have chosen a new supplier who will then get in touch about your new tariff.”
The other suppliers to cease trading this year were:
- Future Energy ( January)
- National Gas and Power (July)
- Iresa (July)
- Gen4U (September)
- Usio Energy (October)
Since the gas and electricity supply markets were opened up to competition, the industry has attracted dozens of new entrants.
As of June this year there were 73 suppliers, including 67 smaller operators. Ofgem said 13 new suppliers entered the market in the year to June.
Of customers switching provider, many have chosen small energy firms over the “big six”, who have consistently lost consumers.
