Energy providers increasingly asking companies in debt to shut

This is a 186% increase from the seven during the equivalent period last year. 

Many businesses have seen their energy costs spiral over the past year as their fixed-term contracts for energy ended and their suppliers have increased their monthly payments - often by large amounts. 

And, despite the support package recently announced by the government, many firms are still likely to see significant rises in their energy bills in the coming months, with the cap being double the average business energy costs in October 2021. 

Sectors particularly at risk of higher energy bills that increases the likelihood of insolvency include high users of energy such as chemical and food manufacturers, the hospitality sector as well as sectors such as residential care. 

Many small businesses who don’t have the resources to secure more favourable deals are also likely to find themselves in difficulties. 

Energy providers have traditionally been unwilling to forgive any debt owed from customers in arrears, as they find it easy to replace customers who have gone insolvent. There’s also a lower threshold for shutting down an indebted individual. 

Mazars partner Michael Pallott said: “Small businesses - and even some larger ones - across the UK are heading for a tough winter. The rise in businesses closed down due to non-payment of energy bills shows just how badly many businesses are suffering already.

“As the economy slows and many businesses still see their energy bills rise, we are likely to see many more closures in the months ahead.”