So energy looking to raise £50m

kev2009

Hi all,

Just seen an article in city A.M and utilityweek advising SO Energy looking to raise £50 to firm up finances.

Having just switch my gas to them and fixed for 2 years, should I be worried? I know ESB bought a large stake in so energy and re-branded to so energy so I was expecting so energy to be ok financially as I believe ESB were quiet bit so slim chances of going bust but not I'm not too sure...

Thanks

Kev

worrywart_3

What did did you get ? I’m with them and they haven’t offered any fix I’m gas only two your guess is as good as mine I was suprised to read the articles too yes they have good backing but my decide to give up 

MattMattMattUK

Seeking new funding in this way does not mean much in itself, also no real worry as if they did go bust, which is unlikely in the short term due to the EPG, then you would be protected by SoLR anyway.

[Deleted User]

Like a number of energy suppliers, SOEnergy has its challenges:

(From the last published accounts):

ESB Retail has a significant interest in SOEnergy (with some shared Directors). ESB Retail seems to have deferred its latest accounts for 4 months.

‘So Energy is seeking tens of millions of pounds of additional investment to firm up its position amid the continuing volatility in the energy market. Utility Week understands the supplier has appointed Interpath Advisory to help it raise around £50 million within the next two years.’

The ‘acid test’ will be whether or not they can raise the extra finance. Given past failures, I am sure that Ofgem is keeping a very close eye on the situation.

kev2009

Thanks, yes I'm sure Ofgem are keeping a close eye.

@worrywart_3 I requested a switch a while back and at the time chose a 2 year fix tariff, however it took ages (months) of me chasing etc to finally get it all sorted.  My fix was before any price cap was known so mine has ended up being slightly higher per unit (although this is current dropped to the price cap unit price) and the standing charge is slightly lower than the price cap so all in all if i had remained on variable I'd be paying a similar amount anyway so no huge loss but idea was to have 2 years on this price to avoid any further increases where were being discussed around the time i requested my fix tariff.

I already have my Elec with them on a existing fix (which expires in March) so will decide in Jan what to do regarding that i.e. stay with so energy, move away etc but So Energy are not doing any fixes it seems at the moment, unless they offer existing customer any different tariffs than what is on the website.

Elec is definitely going to go up then as i fixed before all the price increases started so will be interesting to see how much they decide to charge me when fix ends.

Kev