Yet another energy supplier has gone bust. Extra Energy was a smaller energy supplier with over 100,000 domestic customers and 21,000 businesses. Ofgem has a safety net in place, which means the energy supply of Extra Energy’s customers will continue. Ofgem will select a new supplier to take on customer accounts.
A number of smaller energy suppliers have gone bust in recent months, including Usio Energy, Gen4U, Iresa, National Gas and Power and Future Energy.
In light of the recent energy supplier failures, Ofgem is now proposing financial and customer services test for new suppliers.
Under the new proposals, companies would have to demonstrate that they have adequate financial resources to manage their business for at least 12 months after entering the market.
It also is looking at whether they can meet customer service obligations before they are awarded a licence.
Ofgem’s measures are likely to be in place by late Spring 2019. One of Ofgem’s main activities is to protect gas and electricity customers. It does this through the promotion of competition and regulating monopoly network companies.