Second UK energy supplier ceases trading

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Scottish Power has been chosen as the supplier to take on the 108,000 domestic customers and 21,000 business customers of Extra Energy, which ceased trading last week.

The appointment follows a competitive process run by Ofgem to get the “best deal possible” for the customers.

Scottish Power said it will offer Extra Energy’s customers a competitive tariff and will honour all outstanding credit balances, including money owed to both existing and former domestic and business customers of Extra Energy.

New customers of Scottish Power will be contacted by the energy provider over the next week, after which “customers wishing to leave Scottish Power can do so.”

Philippa Pickford, interim director for Future Retail Markets at Ofgem said: “We are pleased to secure a deal with Scottish Power, where Extra Energy’s domestic and business customers will be offered a competitive tariff for their energy. Their credit balances will be honored and their energy supply will continue as normal.”

She advised Extra Energy’s customer base to “wait until Scottish Power contacts you. They will give you more information about the tariff you are on and about your credit balance if you have one. Once the transfer has been completed, you can shop around for a better deal if you wish to.”

The big six supplier, which already provides energy to more than 5 million households and businesses, is taking responsibility for the customers from 25 November.

Scottish Power chief executive Keith Anderson said the new customers have “no need to worry” and should “sit tight”. “They are joining a safe and stable integrated energy company that will soon uniquely generate power from 100 per cent green sources and invests every day to make renewable energy cheaper.”

Extra Energy had struggled with customer service since 2017, coming last in Citizens Advice’s customer service league table.

This is the second energy supplier to cease trading with Ofgem announcing last week that Spark Energy would close its doors due to “tough conditions”.

Industry commentators believe this trend could continue.