London — Small British energy supplier So Energy said it is no longer seeking funding options after the government’s energy price guarantee and a fall in wholesale energy prices led to improved conditions for the company.
Energy suppliers across Europe have struggled in the face of record-high wholesale power and gas prices following Russia’s invasion of Ukraine, with many suppliers collapsing who had not hedged, or bought in advance, the power their customers need.
So Energy, which is majority owned by Irish Energy group ESB and has around 300,000 customers, in October appointed advisers to help raise more cash to see it through the crisis.
“Because of the change in market circumstances and the continued support from our majority shareholder, ESB… we are happy to report that we are no longer exploring additional funding options,” So Energy co-founder Simon Oscfort said in a statement.
Since October the government has committed to subsidise household electricity bills through is price guarantee scheme, set at 2,500 pounds ($3,074) a year for average consumption until the end of March 2023 and 3,000 pounds a year until the end of March 2024.
Without this annual bills were forecast to reach over 4,000 pounds next year.
Wholesale energy prices have also fallen since peaks in August, as Europe has acted to reduce gas demand and find alternatives to replace Russian imports.
($1 = 0.8134 pounds)
Reporting by Susanna Twidale; editing by Jason Neely
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