Energy firm collapses with web of debts

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A Energy supply firm based in Northern England has collapsed leaving creditors and customers in limbo according to reports.

GB Energy Supply which is located in Lancashire has ceased trading with immediate effect leaving its 160,000 customers in limbo over their energy supply.

The company’s financial troubles were clear in its last accounts submitted with them showing annual losses of £630,018

Chiefs at the company have blamed spiralling price increases for the company’s downfall and their Managing Director Luke Watson issued a statement on the company’s website pertaining to such.

Watson said

“It is with regret that we are informing you that GB Energy Supply is no longer trading and therefore you will be unable to access our website at this time”

“Due to swift and significant increases in energy prices over recent months and, as a small supplier our inability to forward buy energy to allow us to access the best possible wholesale prices, means that the position of the business has become untenable and as such we will now be entering a process overseen by Ofgem to move you to a new supplier.

“Customers will be contacted soon by their new supplier with more information on how this process will affect them.”

The company had previously boasted of expansion and had even commissioned the building of a large new headquarters north of Preston. The new office building remain only partially built with only 60% of the work done. This was following the building contractors walking off the job with invoices unpaid.

13 people full time staff are also said to have lost employment as a result.

The Energy regulator Ofgem has advised that the firms customers will continue to be supplied despite the company collapsing.

Victoria MacGregor, CAB’s Director of Energy has told customers affected that they need not panic

“This shouldn’t affect their gas and electricity supply so they’ll still be able to heat and light their home as normal.

“The energy regulator Ofgem is finding a new supplier for GB Energy Supply customers. The new supplier will contact customers in due course.”

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