A large energy company serving 20,000 customers is facing the possibility of collapsing after submitting a notice for administrators this week.
Ripple Energy, a cooperative organization, initiated the process of appointing administrators on Monday and is currently collaborating with financial restructuring experts from Begbies Traynor. A Notice of Intention (NOI) was filed to express the company’s intention to appoint administrators in an effort to prevent liquidation. Such notices are typically submitted with the hope of attracting a rescue bid.
The future outcome remains uncertain, with industry experts citing the complexity of Ripple Energy’s assets as a potential obstacle to a successful rescue bid. Notably, Ripple Energy is not a direct energy provider but enables customers to purchase shares in solar panel parks or wind farms, ultimately leading to discounts on their energy bills provided by major suppliers like British Gas, E.on Next, Octopus Energy, and Good Energy.
Customers have the flexibility to decide the amount they wish to invest, with a minimum spend of £25. The company guarantees that the one-time payment funds construction and assures customers that their share in the renewable energy projects is fully insured against damage or malfunction.
Ripple Energy encourages members to aim for owning enough renewable energy to cover 100% of their electricity usage, with the potential to invest up to 120%. The company claims that signing up could result in a 25% reduction in energy bills. As per the website, Ripple Energy boasts over 20,000 members.
In the event of a collapse, customers who have purchased shares in the company may face potential losses on their investments, although their energy supply will remain unaffected.
Joint Administrators, Craig Povey and Gareth Prince of Begbies Traynor, have been appointed to oversee Ripple Energy’s insolvency process. The administrators are currently engaged in discussions with several interested parties with the aim of finding a suitable buyer for the business. It is anticipated that the service will continue without disruption during the sale process.
Established in 2017 by CEO Sarah Merrick, Ripple Energy employs approximately 35 individuals. The company experienced a significant influx of investments during the 2022 energy crisis when energy costs were escalating.
Last year, Ripple Energy secured a £21.8 million loan from Virgin Money for a wind farm project in Ayrshire, Scotland, and obtained £20 million in funding from institutional investors for a solar park development in Derril Water. Work commenced on a 164-acre solar farm in Devon last October, with the project expected to provide electricity for around 14,000 homes upon completion in spring 2025. The impact of recent events on the construction progress remains unclear.
Ripple Energy faced opposition from local residents when the solar farm project was announced and subsequently approved. The Department for Energy Security and Net Zero emphasized the importance of solar energy in the UK’s transition to clean energy, highlighting that solar developments are subject to rigorous scrutiny to ensure minimal impact on agricultural land and food security.
Investors in Ripple Energy are advised to monitor updates on the insolvency process and contact the appointed administrator for information on their rights, potential returns, and losses. Ripple Energy has not yet issued a formal statement regarding the recent developments.