An energy supplier to more than 300,000 British households is seeking tens of millions of pounds of additional funding amid continued industry turmoil.
Sky News has learnt that So Energy has appointed advisers from Interpath to raise more than £50m to fund itself through 2023.
The search for new capital comes a year after the Irish energy group ESB took a controlling stake in So Energy.
Founded in 2015 by Simon Oscroft and Charlie Davies, two former energy traders at the Australian bank Macquarie, So Energy is one of a sizeable number of mid-sized utilities which have been squeezed by market turmoil over the last 18 months.
Dozens of UK suppliers have collapsed, many of which had not hedged their wholesale gas purchases ahead of enormous price spikes.
Mr Oscroft said: “Despite the ongoing and unprecedented market volatility, regulatory uncertainty and political instability, we’ve weathered the storm well and are the last true challenger left in the market.”
“We have seen some big changes in energy policy over the last few weeks – the chopping and changing to the Energy Price Guarantee, uncertainty over the price cap, and the Energy Market Financing Scheme seemingly only available to some energy players.
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“We want to make sure we have the right funding to manage this uncertainty and grow into the future, which is why we’ve started the process of exploring options for additional investment for the next two years.”
So Energy’s search for new financing comes as the government tries to finalise the sale of Bulb, the largest energy supplier to go bust during the industry’s ongoing crisis.
Ministers are close to selling Bulb to Octopus Energy, although rival Ovo has also expressed eleventh-hour interest in a deal.
Mr Oscroft is understood to be keen to wrap up new funding for So Energy in the coming months.
“We are optimistic about the outlook into next year. We’re seeing the forward wholesale market calming down and we hope the new Prime Minister can bring much needed political and economic stability,” he said.
“We also believe the reforms Ofgem is currently consulting on will provide better certainty from next year onwards.”
