Hub Energy ceases trading following financial difficulties
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Lancashire headquartered energy company Gas and Power has called in administrators following financial difficulties.
Trading as Hub Energy, the Preston-based company called in Joint Administrators Andrew Stone and Rick Harrison of Interpath Advisory last week.
The electricity and gas supplier, which employed 29 staff had around 6,000 domestic customers and 9,000 non-domestic customers.
The company ceased trading on 9 August 2021.
This followed the commencement of a government-regulated process to appoint a Supplier of Last Resort to take over Hub Energy’s customers.
As a result of that process, Ofgem have confirmed that all customers have been transferred to EON Next.
A number of staff have been retained to work alongside the Joint Administrators to enable the smooth transfer of customers to EON Next and to assist with the final billing process.
Andrew Stone, managing director at Interpath Advisory and Joint Administrator, said: “The Company had been experiencing financial challenges for some time, exacerbated recently by significant cash flow pressures primarily due to being unable to buy wholesale energy on usual market credit terms.
These factors, coupled with the ongoing high wholesale energy prices, left the Company in an extremely challenging position.
“Against this backdrop, the Director asked the Regulator to run a Supplier of Last Resort process and subsequently appointed administrators to protect the interests of the Company’s customers and creditors.”
He added: “Since appointment, we have been working closely with the team at EON Next to agree appropriate transfer procedures and terms, and we are pleased to be working closely with EON Next to ensure that customers receive a smooth transition to the new supplier.”
Hub Energy is the third UK small energy supplier to cease trading this year.
It follows two suppliers – Green Network and Simplicyt Energy – ceasing to trade in January, as the market remains challenging for smaller players.
In total, more than twenty energy suppliers have folded since 2018.
Market watchers have warned that more could follow this year after the soaring of wholesale gas and electricity prices.