THE CEO of Dorset-based energy supplier Utility Point has issued a statement after the company ceased trading.

Utility Point, which is based at Merck House, Seldown, in Poole, supplies gas and electricity to 225,000 domestic customers.

In a statement to the Echo, CEO Ben Bolt said: "We are not yet in administration. The energy sector is a strange beast and we have to go through a process which involves having our supply licence revoked and customers transferred over to the new supplier before going into administration.

"At this point we will find out from the new supplier (SOLR) what they intend to do. i.e. if they would like to keep all staff, or certain staff members or departments.

"The transfer of customers is likely to be Saturday morning with the administrators appointed on Monday.

"At this stage and only at this stage will things become clear and subsequently the administrator will contact everyone and inform them if a proposal for redundancy will be issued. If so they will all be consulted in line with the correct procedures and aligned with all legal processes.

"Simon and I pride ourselves on doing the right thing by everyone and it is no different now and, along with the Board, have worked tirelessly to ensure staff and our creditors are put in the best possible position.

"We thank all our staff, customers and suppliers for their support over the years and we have always done our utmost for everyone involved even at the end, shirking no responsibility and keeping our directors duties at the forefront of all we do.

"At this time I have turned my attention to looking after all the team at Utility Point and ensuring all customers are transitioned smoothly to a new supplier when this becomes clear."

In a letter to employees, CEO Ben Bolt attributed the closure of the 15th biggest energy company in the UK, to current global events along with the ongoing Covid-19 situation.

The letter said: "Pressures will continue to rise in the market as wholesale energy prices have soared to record levels off the back of an increase in extreme weather conditions.

"This has lead to a global gas supply shortage, inability to provide timely and necessary generator maintenance causing multiple sites to be taken offline and lower exports from Russia coupled with rising demand.

"Utility Point has offered competitive prices and a great standard of service since inception in 2017 and gone over and above what has been required to support the British public it supplies however, the support for a supplier in rising to these requests given the state of the global economic climate, has not been forthcoming.

"This toxic mix of circumstances and lack of commercial understanding from certain powers has made it impossible to continue, indeed the only real outcome for consumers, which will be felt in the coming year, is that prices will rise for the very people they are trying to protect. Thus, it is due to this perfect storm and with great sadness that we close our doors."

OFGEM will select a supplier to take on Utility Point’s 225,000 customers and announce this to the wider market on Thursday 16 September with the view of transferring all customers in the early hours of the morning on Saturday 18 September.