Energy suppliers are set to file a record number of winding-up petitions against businesses as companies struggle with soaring energy costs according to new research by Harcus Parker.
Court filings show that there have been more than 400 attempts by suppliers to shut down companies to reclaim their energy debts over the past decade. The analysisshows that if the rate of winding-up petitions filed in the first four months of the year continue at the same pace, 2023 will see a new record high. The firm notes that around half of petitions have typically resulted in the targeted companies being shut down.
The Federation of Small Businesses (FSB) has warned that more than 90,000 small businesses are at risk after signing up to fixed deals in the second half of last year, when rates were at their peak.
Tina McKenzie, Policy Chairwoman at the FSB, said “Large energy suppliers must give vulnerable small businesses every chance to pay their bills. If winding-up petitions are being issued in great numbers, without support being provided, then there’s a need for a moratorium to be imposed.” Harcus Parker is also arguing for a moratorium while it brings a £2bn class action legal claim against several energy companies, with this centred on allegedly undisclosed commission payments to third-party brokers.”