So Energy calls off search for additional funding

So Energy has called off its search for additional funding, citing recent government announcements which it says have provided the market with more stability.

The supplier revealed in October that it was seeking additional funding due to the extreme market volatility and is thought to have appointed Interpath Advisory to help it raise around £50 million within the next two years.

In an update on Monday (5 December) So Energy co-founder Simon Oscroft said that due to the fact conditions had become more stable, and that majority shareholder ESB was continuing to back the supplier, it was no longer seeking additional funding.

He said: “Just over a month ago, we announced that we were exploring additional funding options to combat the uncertainties in what was an increasingly volatile market.

“Since then, we have seen future wholesale prices fall – allowing us to buy both gas and electricity at a much lower cost – and a new government step-up with continued support for customers through the Energy Price Guarantee by extending it for an additional 12 months.

“Because of the change in market circumstances and the continued support from our majority shareholder, ESB – who remains a committed and valued partner – we are happy to report that we are no longer exploring additional funding options.

“With the backing of ESB, we are on a sound financial footing going into 2023 and are looking forward to retaining a very strong position within the GB retail market as the last true challenger supplier left after the wave of supplier collapses.

“A competitive retail sector, with innovative challengers like ourselves continuing to operate in the market, is essential if customers are to get the best possible service.”

Elsewhere in the sector fellow disruptor brand Good Energy has announced the recent acquisition of heat pump provider Igloo Works for an initial £1.75 million.

The deal will see Igloo, founded by former Igloo Energy boss Matt Clemow, incorporated into the Good Energy brand.

“Igloo’s tested model for installation, services and maintenance of heat pumps will initially be scaled up through access to additional finance and Good Energy’s more than 270,000 strong community of climate concerned customers,” the company said.

Nigel Pocklington, chief executive of Good Energy, added: “Bringing the Igloo Works team on board is a big step towards our ambition to help a million customers cut their carbon, and it targets a vital area where that’s needed — the electrification of heating.

“With Igloo’s established expertise and technology Good Energy will be right at the forefront of this transition.”