Extra Energy has ceased trading and Scottish Power will be taking over. Scottish Power offered the best deal to Ofgem to take over all of the Extra Energy supplies. Here’s what you need to know;
Current Contract
Scottish Power will not be honouring previous rates with Extra Energy. This was expected since Extra Energy often put homes and businesses on rates they couldn’t afford – hence the bust.
Credit
Any customers in credit with Extra Energy will have their credit honoured. You will get this all back. Scottish Power will contact you soon.
New Rates
You’ll be going onto deemed rates. These are very expensive and I advise you quickly agree a new deal with Scottish Power or you shop around and get the best price you can.
Around 10% of micro-businesses are on deemed contracts. It’s vital that they are aware that prices on these contracts are on average 80 per cent more than rates charged in a negotiated contract. If you are on a deemed contract you should shop around and compare supplier offers for a new energy contract, as you could make significant savings.
Exit Fees
You won’t be charged any to switch for your domestic supply. Business may have a short period to switch or be put into a 12 month deal. You’ll find this out once Scottish Power contact you.
Debt
The debt owed to Extra Energy will most likely need to be paid back to either the Extra Energy Administrators or direct to Scottish Power. This depends on whether or not Scottish Power will be taking the debt from Extra Energy. My guess is they will.
