Proactive Investors - British Gas has led the way in filing winding-up petitions against businesses which are struggling to meet energy bills in what could be a record year for the disputes.
Some 30 wind-up petitions were filed in the first four months of this year by British Gas and rival supplier E.ON (LON:0MPP) alone in a bid to stave off rising customer debt, according to court filings.
Over 400 cases have been brought by suppliers looking to shut down companies in the past ten years meanwhile, with 2023 set to be a record-breaking year for wind-up petitions, Harcus Parker lawyers claim.
UK companies can apply to shut down firms to retrieve owed money, so long as it can be proved that the latter is unable to pay and faces debt over £750.
Around half of these winding-up petitions lead to the debt-struck companies being shut down, with assets then being sold to pay back the owed funds.
Energy suppliers had become exposed to around £1.9bn of customer debt as of last December, a Cornwall Insight report found, as soaring costs left many unable to pay bills.
A British Gas spokesperson previously commented: “We do not treat winding up petitions lightly and only consider them in specific circumstances where there is clear liability.”
E.ON echoed the comments, explaining winding up petitions were “a last resort” following discussions with the business owners.
British Gas parent Centrica PLC (LON:CNA) was approached for further comment.