END OF LOCAL ENERGY COMPANY WOULD RAISE HUGE QUESTIONS SAYS LUFF
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END OF LOCAL ENERGY COMPANY WOULD RAISE HUGE QUESTIONS SAYS LUFF

The difficulties facing Whittington-based BizzEnergy raise huge questions about the behaviour of the banks during the credit crunch and, over a longer period, about the major energy companies, says local MP Peter Luff.

Peter Luff, who is chairman of the Commons Business and Enterprise Committee that scrutinises energy policy, says the business based in his Mid Worcestershire constituency is a vital one at two levels. He explained,

"Locally it provides 160 jobs, and nationally it has been the only really credible challenger to the "Big 6" energy companies for the supply of electricity to small and medium sized businesses.

"I have been talking to the directors of the company all week and have done what I can to save the business, but reports in the weekend papers say the company is likely to go into administration this week.

"I desperately want BizzEnergy to succeed. If it does not, it would be a tragic proof of the shocking lack of competition in the electricity supply business.

"The company's bank will have some serious questions to answer - and so will the big six energy companies who have consistently refused to supply BizzEnergy with power. I'm not saying that that the company has necessarily got all its commercial judgements right - the huge increase in wholesale electricity prices in recent weeks must have posed big challenges to their mangers - but I am saying this was a fundamentally sound business that the whole country needed to see succeed.

"This week I have been in contact with the company's bank, the energy regulator Ofgem, and I have discussed the situation personally with the Energy Secretary of State, Ed Miliband. Sadly, if these reports are true, it looks as if it has not been possible to save the company. The staff will pay a heavy price - and the whole country will be the poorer - if this ambitions and important business goes to the wall.

"Worcestershire needs high quality jobs like these - and the country needs a more competitive energy market. The end of BizzEnergy would be a blow to both the county and the country."

ENDS


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