What to do when your energy supplier folds?
Extra Energy has failed! Just like in any market, Energy Companies can fail. Unlike other markets, energy is considered an essential service, so energy regulator OFGEM has protocols in place to ensure customers receive continual service even when their supplier fails.
Direct Power has operated in the UK energy market for more than 15 years. Unfortunately, during this time many suppliers have failed. Financial pressures have forced multiple energy supplies to cease trading in 2018 alone. Extra Energy being the most recent supplier failure to impact business clients.
When an energy supplier fails, OFGEM appoints what is known as a Supplier of Last Resort. The role of the Supplier of Last resort is to ensure customers continue to receive energy without any interruption to service, and the supplier who gains this nomination has been selected by OFGEM due to them offering what is determined to be a good solution for the end consumer. In the case of Extra Energy, Scottish Power have been appointed the Supplier Of Last Resort.
The good news for the customer is that they don’t have to worry about keeping the lights on. The bad news is that contracts typically have to be renegotiated. Not to worry, Direct Power can help you in this scenario.
Some practical tips if your energy supplier folds:
• Take a meter read and document the read with a photo. This should be used to close your old suppliers account down and open up the account with the new supplier.
• Get in touch with Direct Power to secure a new contract thus minimising the time spent out of contract.
• Keep credit balances to a minimum.
• Consider installation of a smart meter so bills are always accurate and you are not billed for overestimated reads.
If your energy supplier has: folded, entered administration, liquidation or bankruptcy, or any other failed situation do not panic, but do get in touch for professional assistance.