Reprieve for Extra Energy customers

SCOTTISH Power has been appointed to take on supplying the 108,000 domestic customers and 21,000 business users left stranded after the collapse of Extra Energy last week.

Watchdog Ofgem has been canvassing interested firms to rescue customers from limbo. The new provider is expected to take over from today.

Extra Energy, owned by Israeli businessman Moti BenMoshe, went bust just days after The Mail on Sunday revealed it was in financial difficulties and could not afford its green tax payments.

Ofgem said Scottish Power is offering Extra Energy’s customers a ‘competitive tariff and will honour all outstanding credit balances’.

The watchdog said: ‘Our advice for customers of Extra Energy is to wait until Scottish Power contacts you. Once the transfer has been completed you can shop around for a better deal if you wish to.’

Customers are advised to take a meter reading while they wait for an update from the new provider.

In another worrying case, Spark Energy went bust on Friday with an outstanding green tax bill of £14.4million still to be paid to Ofgem. OVO is in negotiations to take on Spark’s 290,000 customers.

Ofgem revealed that Spark’s total bill for outstanding green taxes, or Renewable Obligations, is £58.6million.

Economy Energy, URE Energy and Eversmart have also been named by the regulator as firms struggling with their green tax payments.