Sale of Bankrupt Green Deal Provider Close?

17 June 2013

Administrators overseeing the sale of bankrupt Green Deal Provider Enact Energy are optimistic that a buyer will be found shortly.

Enact Energy Renewables Ltd. was one of the first companies to be granted Green Deal Provider status by the Department of Energy and Climate Change (DECC). The company went into administration at the end of May, causing the loss of 29 jobs.

News that one of the pioneering Green Deal companies is now no longer operational will be a blow to the Government as it looks to promote its flagship energy efficiency and carbon reduction initiative.

But all is not lost just yet.

Begbies Traynor, the business restructuring and insolvency advisors responsible for the sale of the company, is confident that a buyer will be found shortly.

“There has been a lot of interest in the business and we have sent out a lot of details,” said Ian Walker, Senior Partner at the Exeter-based insolvency firm.

“I am hopeful that we will achieve the sale of the business and look forward to the best and final offers."

One of the reasons a quick sale could be on the cards is the company’s client list. In addition to serving numerous local authorities and private companies, Enact Energy is thought to have a £100 million contract with private landlords to provide energy efficient improvements under the Green Deal, a dangling carrot to other companies looking to get in on the Green Deal action.

Private landlords are one of the key groups the Government is targeting through the scheme. Many of the most run-down UK properties are owned by landlords, and it is hoped that installation of Cavity Wall Insulation, Loft Insulation, double glazing, efficient boilers, and other green measures will improve the situation.

Recent legislation also means that private landlords will soon have no option but to bring their properties up to scratch.

From 2016, landlords will not be able to deny a tenant’s reasonable request for energy-efficient improvements. Furthermore, after 2018 properties in EPC (Energy Performance Certificate) bands F and G will not be permitted for rent or sale.

The Green Deal allows householders to make a series of home improvement measures, including Cavity Wall Insulation and Loft Insulation, without the upfront cost. A loan is linked into the property and repaid through its electric bill. Both landlord and tenant must be in agreement before a Green Deal plan is put into place.

With a huge potential for upcoming work in the private landlord sector, Begbies Traynor and the DECC will hope that an interested party is found quickly.

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