We have just received the following announcement from Our Power:
It is with heartfelt regret that Our Power Board of Directors has taken the decision to close Our Power Energy Supply Ltd by taking the company into administration.
Directors had no choice but to reach this decision as the requirement to bring working capital into the business outpaced our ability to improve revenue collection and raise funds.
It is a very difficult time in the energy market including a highly volatile wholesale energy market which means that we have needed to post significant collateral with our energy wholesaler which has taken cash out of the business.
This situation has been made worse by the number of suppliers that have experienced difficulties and have had to exit from the market. These failures have exacerbated the situation because of the impact they have had upon confidence in the wider sector.
In addition to the external conditions, the impact of having to change CRM system and the time it has taken us to make progress with recovering cash through billing, direct debits and achieving customer payments has meant that the business is carrying too many costs without receipt of funds to cover this.
The Leadership Team and Board of Directors have done their utmost to try to find a solution but have been unable to and reluctantly took the decision to close the business at the Board on 24th January.
We have been in close contact with Ofgem and KPMG (as Administrator) to ensure as smooth a process as possible in the circumstances. Our Power customers will be transferred to another supplier under the Ofgem ‘Supplier of Last Resort’ process which is taking place now and the new supplier will be announced by Ofgem next week.
Our Power has grown to 30,000 customers largely through the commitment of our Members and your support has been exceptional. Of the many, many discussions that we have had with potential funders and even looking at a trade sale, it is this that has most impressed these parties. The Board, Leadership Team and staff remain grateful for all the support that we have received from Members over the past four years.
In looking at what this means for your tenants that are on supply with Our Power the position is:
- Ofgem will appoint a supplier to take over these accounts
- The customer will be contacted by the new supplier
- The price caps in place across the sector mean that the tariffs which can be charged cannot go above the caps
- Customers should not try to switch suppliers until the move to the new supplier is completed
- No customers will go off supply due to this process
Our Power Community Benefit Society, of which your organisation is a member, has not been taken into administration at this point to permit time to assess whether there is any opportunity for viability. We will notify Members of this position as soon as the position is clear and will confirm the process required in the circumstances.
Our sincerest apologies that we were unable to find a way to enable Our Power to survive.