So Energy looks to raise £50m to firm up finances

So Energy is seeking tens of millions of pounds of additional investment to firm up its position amid the continuing volatility in the energy market.

Utility Week understands the supplier has appointed Interpath Advisory to help it raise around £50 million within the next two years.

In a statement, company co-founder Simon Oscroft said the retailer had so far “weathered the storm well” and that it was “the last true challenger left in the market”.

However, he added: “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.

“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.”

Last year Irish power supplier ESB acquired a more than 75 per cent stake in So Energy, bringing the two companies together.

The deal saw Oscroft and co-founder Charlie Davies retain their stakes in the supplier while Monica Collings, the managing director of ESB Energy and former joint chief executive of Vattenfall’s retail business, became chief executive of the combined entity.

In a statement, Collings said: “We’re entering a process to prudently ensure So Energy has the funding it needs to continue challenging and growing.

“Market conditions are difficult and, as I’m sure we all recognise, the government’s instability has exacerbated the situation. Policies designed to help – like the Energy Markets Financing Scheme – that have been introduced to provide some security contain clauses that prevent mid-sized suppliers from being able to access them.

“It’s right that we look to firm up our company’s position and look forward to talking to potential investors about the great things that we have going on within So Energy.”