Energy crisis claims PFP Energy

Preston-based PFP Energy Limited and PFP Energy Supplies Limited have been placed into administration as a result of the current energy crisis.

Gas prices have increased rapidly across the last year, from less than 50p per therm earlier in the year to around 174p at present. However, as suppliers to domestic customers are restricted in how much they can raise their prices, many are currently being forced to sell at a loss.

PFP supplied gas and electricity to  around 66,000 domestic customers and  around 25,000 non-domestic customers. On September 11 of this year, Ofgem transferred these customers to British Gas as part of the Supplier of Last Resort regulated process.

The company said that energy supplies have remained secure throughout this process and both commercial and domestic credit balances have been protected as part of this transition.

PFP employed around 50 people, and it is likely that some will be retained in the short term to assist with the transfer of customers to British Gas, raising of final bills, to assist with the credit control process and assist the joint administrators with their statutory duties.

Paul Berkovi, Paul Flint and Rob Croxen of Alvarez & Marsal Europe LLP have been appointed as joint administrators.

Paul Flint said: "The UK’s energy retail sector is facing well-publicised issues. PFP has unfortunately been unable to avoid the challenges it and other suppliers have faced and, against this backdrop, the company has taken the difficult decision to appoint administrators.

"The focus for the administrators in the coming days will be in supporting employees and working with British Gas on a smooth transition for customers.”

Meanwhile, Andy Pilley whose gas and electricity business BES employs hundreds of people out of Fleetwood has said that his tactic of buying energy in advance has protected the company and their customers from the sharply rising prices.

"For BES it does not affect us at all as our financial strategy is aimed at reducing the risk of loss caused by fluctuating prices, in this case buying enough gas to cover each contract when it is taken out," he said.

"Hedging like this in advance protects the entirety of our contracts so the current price hikes make no difference to us whatsoever. As BES only supplies businesses, they are also not affected by the domestic price cap that is currently forcing household suppliers sell energy at a loss."

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