With Edinburgh-based energy supplier Our Power ceasing trading on 25 January, questions have been asked over the causes behind the failure.
Regulator Ofgem said the energy supply to the group’s 38,000 customers will not be affected and prepayment meters can be topped up as normal.
Our Power informed its members that “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” led to its market exit, according to Scottish Housing News.
The supplier also said it has needed to post “significant collateral” with its energy wholesaler which had “taken cash out of the business”.
The Scottish Government, which had provided £9.5mn worth of commercial loans to Our Power, said it was “hugely disappointed” with the company’s failure, according to Utility Week.
Our Power Chairman Alistair Steele told City A.M. “it is unclear what the level of financial backing is required for a new entrant to cope with market volatility and regulatory change.” The article also said that the first returns, totalling almost £300,000, on the supplier’s crowdfunding bond were due this month.
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