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Redundancies likely at UK energy supplier Utility Point – administrator

By Reuters

LONDON – Redundancies are likely at British energy supplier Utility Point Limited, the company’s administrator Alvarez & Marsal Europe LLP (A&M) said on Thursday.

Six British energy suppliers, with a total of around 1.5 million customers, have gone bust this month as spiralling energy wholesale costs have left some smaller firms struggling.

Energy companies have sought government help to deal with the crisis, with more companies expected to struggle.

Utility Point, based in Dorset in the south of England, employed 197 people.

“Regrettably, there are likely to be some redundancies, with a proportion of the staff being retained in the short term to assist with the transfer of customers,” a statement from A&M said.

“The UK’s energy retail sector is facing well-documented challenges and, against this backdrop, Utility Point’s directors have taken the difficult decision to appoint administrators,” Paul Berkovi, Joint Administrator said.

“The business has faced a number of challenges and was unsuccessful in attempts to secure new investment,” he said.

The company’s 220,000 customers will be transferred to EDF, Ofgem said previously.