Extra Energy has ceased trading. The firm had 21,000 business customers, mostly SMEs, and around 100,000 household customers.
Market participants believe more small suppliers could go under this winter as they struggle to balance their books.
Ofgem today set out plans to ensure new suppliers have adequate capital and resource before they are granted licences.
The regulator will now use the supplier of last resource process to find a new company to take on Extra’s customers.
According to Companies House, the firm posted a gross profit of £10m in the year to 31 December 2016 but an operating loss of £13.6m. The filings suggest the company shed many of its accounts (441,000 at December 2016) this year before ceasing to trade.
Suppliers with over 250,000 accounts have to contribute to the ECO scheme and that threshold is being lowered to 150,000 accounts. Large suppliers continue pushing for small suppliers not to be exempted from policy costs.
Ofgem tightens supply licence rules as money goes missing
Big cracks emerging in energy retail
Risk mismanagement: More suppliers will go bust
Utility Warehouse: More independent suppliers will go pop
Click here to see if you qualify for a free subscription to the print magazine, or to renew.
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.
When an energy company ceases trading who selects the SOLR?
As the market is in a state of “flux” [pardon the pun] how does any supplier willingly take on the risk?
And with the cap due very soon, there is very little positive in being an solr