Insolvency & Rescue Solutions for Energy Providers
The UK energy marketplace supports some 150,000 jobs and contributes over 0.8% of GDP.
Coronavirus has impacted the sector significantly, putting particular strain on oil and gas providers. Among those which have ceased trading this year were Green Network Energy, whose customers switched to EDF, while Simplicity Energy also failed, with its customers going to British Gas. Yorkshire Energy was another failure from December 2020, with customers moved to Scottish Power. Meanwhile, another regional provider, Portsmouth’s Victory Energy went into voluntary liquidation owing more than £131,480 to businesses.
Here at Company Debt, we can offer expert advice for closing and restructuring energy providers. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.
Energy Providers Pressure Points
What are the Reasons for Energy Provider Insolvency?
Regulator Ofgem intended to open up access from around 2015 onwards to a more competitive market, However, there have been successive failures and consumers may find the usual ‘Big 5’ providers to be more reliable if more expensive.
Experts point to several reasons why the smaller providers are not making it, including a lower price cap, high wholesale prices, and a failure to buy at the right time, Brexit, and the costs connected to running a business. Smaller firms may also struggle to hit service levels. Meanwhile, Ofgem has recently introduced more stringent financial tests for new suppliers to show they can adequately fund the business for at least a year. Time will tell whether this proves effective enough to stem the closures.
Help for your Insolvent Energy Provider Business
If your energy provider business is experiencing difficulties, you should not delay seeking advice. You must also inform Ofgem: Under the Energy Act 2004, a failing energy supply company is under an obligation to notify Ofgem that it is unable to pay its debts as they fall due.
Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited comany directors needing immediate professional debt advice