The Scottish government, which provided three commercial rate loans totalling £9.5 million to failed supplier Our Power said it was “hugely disappointed” about the company’s demise.
Our Power, a not-for-profit energy provider based in Edinburgh, ceased trading last week and Ofgem has since announced it is seeking a supplier of last resort (SoLR) to take on the supplier’s 31,000 customers.
The majority of funding for the supplier, which has not yet been fully repaid, came from social investors, Utility Week understands.
The final total repaid will depend upon the outcome of the insolvency process, as well as further discussions between the administrator, other creditors and Our Power’s holding company, Our Power Community Benefit Society.
Cabinet secretary for communities and local government, Aileen Campbell, said the Scottish government was “hugely disappointed” to learn the company has ceased trading and that it had supported it with the aim of tackling fuel poverty.
Campbell added: “This will be a worrying time for all the employees and we have offered support for those affected through our Partnership Action for Continuing Employment (PACE).
“PACE aims to minimise the time individuals affected by redundancy are out of work and we’ve made it clear this is available immediately, as needed.
“It is important to note that Ofgem, is responsible for appointing a new supplier to take over Our Power’s customers so Our Power customers are fully protected and no-one will be cut-off or be charged for the change in supplier and credit balances will be protected.
“In due course, we will seek to provide additional help to these households by signposting them to the Home Energy Scotland advice service; and encouraging relevant social landlords to engage with their tenants.”
Our Power was established in 2016 as a not-for profit energy supplier. The company’s mission was to “make energy fairer and to help those at risk of fuel poverty”.
It is not the first company to cease trading in 2019.
Economy Energy, a supplier with 235,000 customers, exited the market earlier this month.
Our Power said on its website that it is “with great regret” that the company has ceased to trade.
In March last year the supplier teamed up with Mongoose Energy to tackle fuel poverty in Scotland with the creation of “Our Community Energy” – a renewable energy investment scheme.