Coventry-based supplier Economy Energy is reportedly seeking emergency fundraising to avoid being the next company to fall this year.
According to a report by Sky News, the energy supplier, which was recently named as one of the 14 suppliers who failed to meet the Renewables Obligation (RO) late payment deadline, has brought in accountancy firm KPMG to draft a review of its “strategic options”.
Options reportedly include a cash injection and even an outright sale of the business.
Sky News claims to have seen a document headed “Project Wattley” which states KPMG is advising an unnamed utility which “has a number of offerings including pre-pay tariffs, direct debit tariffs” and which boasts a “significant customer base at 244,000 customers”.
Economy Energy is thought to have around 250,000 customers.
Industry regulator Ofgem has previously announced it was investigating Economy Energy over its non-compliance with the RO deadlines.
Figures released by the regulator showed Economy owed £15,650,999.63 in RO payments and £1,413,304.97 in RO Scotland payments.
According to Companies House, Economy Energy has extended its accounting reference period from the end of March to the end of September. The company’s next set of results is now due by 30 June 2019.
An industry source previously told Utility Week that the sudden change could be a sign the company is facing financial difficulties.
However a statement published on its website earlier this month said: “In response to the recent speculation and circulating misinformation, we would like to provide assurance that we at Economy Energy have no intention of closing our doors.
“We will pay our outstanding ROCs obligation in full, business will continue as usual for our customers.
“We would like to thank customers for their loyalty and continued support.”
Economy Energy was ranked in the bottom half of the latest Citizens Advice star ratings table which monitors the customer service of energy companies. It had a score of 2.4 stars out of five.
Meanwhile One Select ranked bottom and ceased trading on 10 December, two days after the league table was published.
In May, Ofgem alleged that energy suppliers Economy Energy and E (Gas and Electricity), along with consultancy firm Dyball Associates, breached competition law.
The regulator issued a statement of objections to the three parties and stressed its findings were provisional. Ofgem has confirmed the investigation is still live.
Utility Week has approached Economy Energy for comment. KPMG declined to comment.