A Newcastle energy company is said to be on the brink of collapse after calling in business advisors, it has been reported.
Green Energy, which has around 180 staff at its city centre base at The Core, is reported to be working with Alvarez & Marsal to prepare for insolvency.
The firm is the latest to fall into difficulties amid rocketing wholesale prices, and according to reports is planning to use the industry regulator Ofgem’s Supplier of Last Resort.
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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.