Rescue, Recovery, and Closure Options for the Energy Sector

Energy suppliers face significant disruption and market uncertainty, making future planning nearly impossible. 

They must balance ensuring sufficient gas and electricity supplies at fair prices with increasing environmental obligations and maintaining profitability for investors.

Rising wholesale gas prices have plunged the market into turmoil, leading numerous smaller providers, who didn’t hedge their prices, to collapse. 

While the decrease in competition and the increase in customers seeking a secure energy provider may appear positive for those remaining in the industry, the truth is there are significant financial and operational challenges ahead.

An Ultimate Guide to close your energy or utility company? 

If your energy or utility company faces overwhelming pressures, it may be necessary to explore options for closing the company. 

As the director of an insolvent company, you have a legal duty to prioritise creditors’ interests and prevent them from incurring additional losses.

To fulfil these obligations, consider engaging a licensed insolvency practitioner as soon as signs of financial distress emerge.

If your company’s financial difficulties have become unmanageable, you can facilitate an orderly closure by initiating a Creditors’ Voluntary Liquidation (CVL). This process, governed by the Insolvency Act 1986, will conclude the company’s operations and handle creditors’ matters in a proper manner.

How do I rescue my energy or utility company? 

Despite the challenges confronting the energy sector, it’s essential to acknowledge that adversity can also present opportunities. 

Vanguard Insolvency is committed to assisting you in achieving long-term success, regardless of the uncertainties ahead.

Achieving this goal involves various approaches, such as implementing thorough risk management and contingency plans to bolster the business against potential future threats. 

It also entails obtaining external funding to foster innovation, safeguard supplies, and enhance working capital. 

Additionally, formal restructuring solutions can enhance the financial and operational efficiency of the company by streamlining complex corporate structures, cutting overheads, and pinpointing underperforming areas within the company.

Our experts in energy and utilities possess the necessary knowledge and experience to guide your company through these challenging times, ensuring it is well-positioned to face whatever the future may hold.