So Energy has revealed it is no longer exploring additional funding options, citing a fall in future wholesale prices, continued governmental support and ESB backing as a means of becoming more financially sound moving into 2023.
As reported in late October, So Energy established aims to raise £50 million in capital as the energy sector remained volatile due to the ongoing energy crisis and skyrocketing wholesale gas prices.
So Energy has now stated that the firm has received continued financial backing from ESB allowing the supplier to move into 2023 with a stronger financial foothold. This will prevent So Energy from receiving the same fate as nearly 30 other energy suppliers that shuttered as a result of the energy crisis.
ESB Energy acquired a 75% stake in August 2021 which saw the two businesses merged under the So Energy brand.
“Just over a month ago, we announced that we were exploring additional funding options to combat the uncertainties in what was an increasingly volatile market. Since then, we have seen future wholesale prices fall – allowing us to buy both gas and electricity at a much lower cost – and a new government step-up with continued support for customers through the Energy Price Guarantee by extending it for an additional 12 months,” said Simon Oscroft, co-Founder of So Energy.
“Because of the change in market circumstances and the continued support from our majority shareholder, ESB – who remains a committed and valued partner – we are happy to report that we are no longer exploring additional funding options.
“With the backing of ESB, we are on a sound financial footing going into 2023 and are looking forward to retaining a very strong position within the Great British retail market as the last true challenger supplier left after the wave of supplier collapses. A competitive retail sector, with innovative challengers like ourselves continuing to operate in the market, is essential if customers are to get the best possible service.”
A crucial aspect in achieving financial stability is the continued support from the UK government via the Energy Price Guarantee, So Energy has said. Currently under this scheme, those on a standard variable tariff, direct debit bills are limited to 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT. This began in October and was set to last until 2023 until changes were made within the government’s Autumn Statement.
The Autumn Statement extended the period of the Energy Price Guarantee until April 2024 however the average energy bill cap will be set at £3,000 from April 2023 onwards, up from the current £2,500. In doing so this protects energy suppliers however could well plunge many into fuel poverty.
Over the past year, So Energy has been vocal in calling for support from the government amid the wider energy crisis. This included asking for support measure to help the nation pay for a “once in a generation energy bill” in August 2022.
