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Utilitywise goes into administration
The energy broker Utilitywise has fallen into administration, putting 1000 jobs at risk. The B2B provider has cited legacy issues and a challenging market as two of the primary causes.
It had a plan to sell the business, but despite some last-ditch attempts no rescue plan was forthcoming. It is the largest business collapse in the energy market in recent years, and potentially a signal of how competitve this sector is becoming.
From 370p a share to 1.9p
At its peak in 2014, Utilitywise was a booming business, with shares worth 370p each. Shortly before it fell, its share price had plummeted to 1.9p.
It's hard to say precisely what the causes were. Utilitywise has been teetering on the edge for some time, and undoubtedly the consistent rise in wholesale energy prices - coupled with Ofgem's energy cap - had damaged its margins significantly.
Utilitywise could indeed be the first of many providers to struggle in the coming years - and it's a timely reminder that business customers looking for energy deals should always delve deeply into the circumstances their potential providers are facing.