Yorkshire Energy is latest domestic supplier to run out of spark
Written by Rother Radio News on 24/11/2020
Another of Britain’s retail energy groups is in emergency talks to avert its collapse, underlining the growing crisis in a sector facing a wave of bad debts because of the coronavirus pandemic.
Sky News has learnt that Yorkshire Energy, which is understood to have roughly 75,000 gas and electricity customers, has been working with advisers to raise additional funding.
Sources said that while there remained an outside chance of the company securing new financial backing, Yorkshire Energy could be the latest supplier to have its customer base transferred to a larger rival.
Its board was understood to be meeting on Tuesday to discuss its options.
Yorkshire Energy launched just two-and-a-half years ago, one of dozens of start-ups in a market in which the biggest players were under fire for their pricing and poor customer service.
A price cap introduced by the regulator, Ofgem, has curbed the scale of price increases, but has also squeezed operators’ margins, with dozens disappearing from the market.
This year, local authority-owned suppliers including Bristol Energy and Nottingham’s Robin Hood Energy have seen their customer books absorbed by larger players in the UK market.
Last week, Ofgem said it was likely to lift the price cap, triggering an increase in average users’ bills by £21 next year, in order to protect companies against payment defaults.
Yorkshire Energy, which also supplies about 130,000 meter points, has been working with KPMG in recent weeks to find new investors.
One insider said the company, which is privately owned and employs about 50 members of staff, could throw in the towel within days.
Yorkshire Energy declined to comment.
© Sky News 2020