Bluegreen Energy Services Limited (10769298): administration
- Status
- Administration ended
- Administration began
- 2021-11-11
- Administrators' firm
- Interpath Advisory
- Formerly
- Arruzzi Energy Supply Limited
- Incorporated
- 2017-05-13
- Location
- London
- Industry
- 35140 Trade of electricity
Why it went into administration
- Energy costs
- Funding withdrawn / unable to refinance
- Regulatory change or action
- COVID-19
From the administrators' statement
The Company's trading difficulties began with the onset of the Covid-19 pandemic in 2020. Many of the Company’s domestic customers claimed an inability to pay their energy bills, while also increasing their energy consumption due to stay-at-home government mandates. This put pressure on the Company’s cash flow throughout 2020.
The Company implemented a scaled back business plan in January 2021, which was designed to keep the business on a stable footing, with an expectation that sales and market conditions would improve by mid-2021. However, that expectation did not materialise, with new customer referrals decreasing. Moreover, the regulatory price cap that the Company could charge its domestic customers was below wholesale energy prices, rendering sales unprofitable.
Given its financial situation, and with certainty around long-term funding not immediately forthcoming from its parent, the Company explored the sale of its customer book during the summer of 2021. This was unsuccessful, with trade parties primarily citing the instability in the market caused by the increased wholesale energy prices.
Administrators' statement of proposals (2021-12-29) · Companies House register