A North East energy company has called in business advisors amid plans to prepare for a potential insolvency, it has been reported.
Green Supplier Ltd, which trades as Green Energy and employs around 180 people, is working with Alvarez & Marsal to oversee the process.
According to reports, the company, which serves around 250,000 customers, plans to use the industry regulator Ofgem’s Supplier of Last Resort, making it another company to collapse due to rocketing wholesale prices.
Read more: Government outlines funding for CF Industries
The company’s administration is expected ‘within days’ and customers will be forced onto Ofgem’s last resort mechanism, which will place its customers with another suitable supplier.
The firm’s chief executive Peter McGirr spoke out at the start of the week, claiming the Government had offered “no support” to struggling SMEs who were facing financial collapse, despite the prime minister’s pledge to help them navigate a “difficult period”.
Mr McGirr said at the time: “You don’t even need to look at the next six months, I would say the next three months will be curtains for us. We will not survive without any support.
“Unfortunately we will exhaust all our options in terms of raising finance unless there is an offer from the government, which it doesn’t look like there will be.
“We will have no choice but to fold the company. At this present moment it feels like the business secretary is very happy with that.”
News of Green working with advisors comes after reports that other companies, along with Utility Point and PfP Energy who went under in the past week, were predicted to fold.
Business Secretary Kwasi Kwarteng and Ofgem boss Jonathan Brearley met with suppliers on Tuesday to discuss their situation. However Mr Kwarteng has previously said there will be no bailouts in the sector.
Meanwhile, Ofgem piled more pressure on the sector after telling five suppliers to pay what they owe into a renewable energy fund or risk being stripped of their licences.
The regulator said that the Feed In Tariff (FIT) had not been paid by London based Colorado Energy, Igloo Energy Supply Limited in Southampton, Neon Reef Limited in Bournemouth, Whoop Energy Limited in Stoke-on-Trent and Symbio Energy in London.
Between them they owe £765,000 and face fines from Ofgem for non-payment.
The deadline to pay into the scheme, which supports small-scale renewable energy generators, was last Friday, September 17.
Not paying into the fund is a breach of suppliers’ licence requirements, and if the suppliers fail to pay up, Ofgem said it might strip them of their rights to supply gas and electricity to homes.
