AROUND 108,000 households have been left without a gas or electricity supplier as Extra Energy has gone bust.
Energy regulator Ofgem will now search for an existing supplier to take on these customers.
But it warns that you shouldn’t switch until a new supplier is appointed.
The only action you need to take is a meter reading, which you can give to the new supplier.
In the meantime, your energy supply will continue as normal and any credit you’ve built up on your account will be protected and honoured by the new supplier.
If you later decide to switch, you won’t be charged exit fees for switching away from the new supplier.
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Those in debt to Extra Energy may still need to repay what they owe, although this depends on the deal Ofgem agrees with the new supplier.
For more information on what happens when your supplier goes bust, check out Ofgem’s website.
Philippa Pickford, Ofgem’s interim director for future retail markets, 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 will now choose a new supplier and ensure you get the best deal possible. While 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 news comes as only today Ofgem proposed introducing new financial and customer service tests for new suppliers in a bid to better protect consumers.
A quarter of all customers are now supplied by small and medium sized suppliers.
But while smaller suppliers frequently top charity Citizens Advice’s customer service league table, Ofgem says there have been “increasing instances” of some new entrants providing poor levels of customer service.
Gillian Guy, chief executive of charity Citizens Advice, said: “Today’s news and other recent supplier failures again highlight how essential it is that suppliers operating in the market have sustainable business models.”
Extra Energy isn’t the only energy firm to go bust this year.
More on energy bills
In January, Future Energy went under with Green Star Energy taking on its 10,000 former users.
In July, Iresa Energy went bust with Octopus Energy taking over its 100,000 customers.
And in October, Usio Energy went out of business with First Utility taking on its 7,000 customers.
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News Pictures Extra Energy goes bust leaving 108,000 customers without a gas or electricity supplier
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