Energy Guide Urges Consumers to Vet Financial Stability of Energy Product Providers

Last updated: February 8, 2024

We advise all consumers to rigorously check the financial health of companies before committing to new boilers and other domestic energy solutions.

This advisory comes in the wake of a concerning trend of energy companies, particularly within the solar sector, declaring bankruptcy, leaving customers without the warranties and protections they initially were promised.

The importance of this caution cannot be overstated, especially in light of a recent report from the Accreditation Service for International Schools, Colleges and Universities (ASIC), which revealed that over 500 solar energy companies have ceased operations in the past eight years alone.

Such a high rate of insolvency not only disrupts the energy sector’s stability but also directly impacts consumers who have invested in these technologies expecting long-term benefits.

Jennifer Warren, a spokesperson for Energy Guide, emphasised the significance of this issue, stating, “The financial stability of your energy provider is as crucial as the quality of the product they offer.

We’ve seen a disturbing trend of companies failing, and with them, the disappearance of customer protections and warranties. It’s vital for consumers to perform due diligence before making any commitments.”

Energy Guide advises consumers to use resources such as the UK Companies House website to verify the financial status of any company they are considering.

This platform offers free access to a wealth of information, including company filings, financial records, and the trading history of registered UK businesses.

Warren further advised, “Checking a company’s financial health can provide peace of mind and save a great deal of trouble down the line. Look for signs of robust financial health, such as consistent profitability and a strong balance sheet. Avoid companies that show signs of financial distress or have a history of legal troubles.”

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In closing, Energy Guide reiterates its commitment to ensuring that UK consumers are not only energy-efficient but also protected from the financial instability of their service providers.

Consumers are encouraged to take proactive steps to safeguard their investments and to consider the long-term viability of the companies with which they choose to do business.