Richard Heis, Mike Pink and Andrew Stone from Interpath Advisory have today been appointed joint administrators to Simple Energy Limited at the request of the secured creditor.
Based in London, Simple Energy is the parent company of Bulb Energy Limited, the UK’s seventh largest energy supplier supplying approximately 1.7 million customers. Simple Energy currently employs approximately 1,000 people and provides services to allow Bulb Energy Limited and other overseas subsidiaries to conduct their day-to-day operations.
Like many other companies across the UK energy sector, the Group had experienced significant financial challenges as a direct result of the increase in wholesale gas and electricity prices. In recent months, it has explored a number of external fundraising and sale options, unfortunately without success.
Bulb Energy Limited announced on 22 November 2021 that it was to enter into Ofgem’s Energy Supply Company Special Administration Regime. The joint administrators of Simple Energy propose to maintain business as usual on the basis that funding for day-to-day operations will be provided by Bulb Energy Limited. The joint administrators are shortly to enter into a transitional services agreement with the Special Administrators of Bulb Energy Limited in order to preserve continuity of service, in particular regarding all employees.
Richard Heis, joint administrator and managing director at Interpath Advisory, said: “The challenges facing the energy sector are well-documented, and as a result of the Special Administration of its subsidiary Bulb, it was necessary for Simple Energy to enter an insolvency process.
“Our immediate priority is to work constructively with the Special Administrators of Bulb Energy Limited to ensure continuity of operations for customers and staff of Bulb, on appropriate commercial terms for Simple Energy.”
The other companies within the Simple Energy group are trading normally and are unaffected by the two administrations.