There are 12 suppliers in the UK that are technically insolvent and therefore at risk of collapse, according to analysis from accountants Price Bailey.
It looked at the credit risk scores and balance sheet information of the 22 remaining suppliers – with the analysis excluding the big six and two businesses with suppressed risk scores – and found that 55% had negative assets on their balance sheets.
Of these 22, ten had a Delphi Risk score – the commercial risk assessment scorecard provided by Experian – of above average or higher risk. Six of these fell into the maximum risk category, which suggests they would find it difficult to access funding.
“The winter of discontent for the energy supply sector is unlikely to end soon,” said Matt Howard, partner at Price Bailey.
“Around half of suppliers have already gone bust and at least another half are technically insolvent and at imminent risk of collapse. These businesses will find it almost impossible to access extra funding unless directors provide personal guarantees, and few are likely to do so in the current climate.”
In 2021, 27 suppliers collapsed, including Zog Energy, Orbit Energy, Entice Energy, Social Energy Supply, Neon Reef, Omni Energy, MA Energy, Zebra Power, Ampoweruk, CNG Energy (electricity and gas), Bluegreen Energy Services, Goto Energy, Pure Planet, Colorado Energy, Daligas, ENSTROGA, Igloo Energy, Symbio Energy, Green Network Energy, Simplicity Energy, Avro Energy, Green Supplier, Utility Point, People’s Energy, PfP Energy, MoneyPlus Energy and Hub Energy. Together Energy became the first supplier to collapse in 2022, leaving behind 176,000 domestic customers and one non-domestic.
Read more: Current+
It’s Time to Go Green!
If you would like to know more about Solar Panels and the PowerBanx range of home battery systems, and get a free instant quote, please complete our online form: