Supplier Pure Planet exit the energy market three months ago because it could not cover rising energy costs and repay money owed to bp.
That’s according to reported documents prepared by the failed supplier’s administrator PwC.
It is understood that bp, which became a minority shareholder in the company in 2017, sought repayment of £52.5 million as of the end of September.
Following the collapse of the firm, its co-Founders talked about the reasons behind the decision to exit the market and the liquidity challenges they faced.
They said: “Kwasi Kwarteng says the price cap is non-negotiable. Fair enough. But that does not mean helping supply companies needs to be non-negotiable too. If he does not act fast, he will have no suppliers left to be Minister of.”
In October, Ofgem appointed Shell Energy to take on Pure Planet’s 235,000 customers.
ELN contacted bp – it said that they did not want to add something to what they said back in October when Pure Planet’s collapse was announced.
At that time bp said: “In October we informed Pure Planet that we intended to end our wholesale gas and power supply arrangements with them. We had worked hard to avoid that outcome but were unable to reach a satisfactory solution to the market and policy issues facing Pure Planet.
“bp had been a minority shareholder in Pure Planet for five years and had also been a wholesale supplier of gas a power to them. During that time, we worked diligently to support Pure Planet and to provide financial support through our wholesale supply and other working capital arrangements.
“However, despite considerable work over an extended period, we concluded it was no longer commercially viable for bp to continue the relationship or extend further support to the company and took that difficult decision.”
ELN approached PwC for a response – the company did not respond by the time of the publication.