Energy firm ‘could have £3m impact on revenue if Gazprom Energy goes bust’

Inspired PLC has said it has already started to take mitigating action in the event of Gazprom Energy’s collapse

Big Zero Report 2022

Energy consultancy Inspired PLC has predicted it could have a potential impact of up to £3 million on its expected EBITDA if Gazprom Energy ceases trading.

The Sunday Times had previously reported that the Manchester-based company could fold if no buyer is found.

The government is currently considering stepping in and nationalising the company temporarily, according to Bloomberg News.

If that happens, it would be the second time in the last few months the government tries to rescue an energy company after placing Bulb into a special administration regime in November.

Last week, MPs asked for more details about the potential additional costs of Bulb’s administration as analysts predict it would cost the taxpayer at least £1.3 billion more than the original £1.7 billion estimates, as a result of a reported hedging ban.

Mark Dickinson, Chief Executive Officer of Inspired, commented: “Whilst the potential impact on the financial performance of the group should Gazprom cease to trade in the UK would be disappointing, these factors are unfortunately outside of the group’s control.”

Gazprom Marketing & Trading, which trades as Gazprom Energy and supplies more than 20% of gas used by British companies, is a subsidiary of Gazprom Group, a Russian majority state-owned energy corporation.

Inspired PLC estimates that approximately 5% of Group revenues, all within Inspired’s Energy Assurance services division, are dependent upon clients that are contracted with Gazprom.

Mr Dickinson added: “We have proactively considered the impact of this event in its entirety and are already focused on the mitigating actions we can take by supporting clients with contract replacement.”

A government spokesperson told ELN: “The UK is in no way dependent on Russian gas, which makes up less than 4% of our supply. Our highly diverse sources of gas supply and a diverse electricity mix ensures that households, businesses, and heavy industry get the energy they need.

“We are aware that Gazprom Energy has a large presence in the non-domestic energy retail market. Gazprom’s retail business continues to trade in the UK and customers should exercise their own commercial judgement with regards to energy supply contracts they have in place at the moment.”

ELN has approached Gazprom Energy and Gazprom Marketing & Trading – the companies did not respond before publication.

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