OVO warns of “physical uncertainty” about its ongoing situation

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OVO Group warned of “material uncertainty” of its ability to continue as a constant anxiety, which raised questions about the future of one of the largest home energy suppliers in the United Kingdom.

In its latest account, the company said that although it is expected to have sufficient liquidity in the period until September 2026, there were questions about the timing and extent of the capitalization plan to meet the new regulatory requirements.

OVO added: “Some elements (from the plan) are outside the control of the group.” “This creates physical uncertainty that may make a big doubt in the group.

The warnings of warnings alert the market, in the worst scenario, the company may not be able to meet its obligations and may encounter an arrest.

OVO accounts also show that they violated some of their reigns in lenders last year, although no action against them was taken, and the facilities were completely paid. It also benefited from the extended payment facilities with a major resource.

OvoWhich includes the UK’s home energy department “An entirely funded entity is supported by shareholders for a long time. “

OVO confirmed last week that it is one of three energy companies that has not yet fulfilled the new capitalist buffer targets set by OffGem, the industry organizer.

Octopus Energy, now the largest domestic energy supplier in Britain, is also Do not strike goalsAlong with another company that has not been determined.

OVO and Octopus have been created to challenge the premium of the former power suppliers such as BRISHISH GAS and EDF, and has become rapidly over the past decade.

“The requirements of the adequacy of capital, and all suppliers work with them for the first time,” said an OVO spokesman. “This is not a reflection on our ability to serve our customers or to performance this year and we will continue to focus on bringing in long -term innovation and investment to the sector.”

OffGem created its capital’s insulating targets after the collapse of 30 energy suppliers in 2021 and 2022 when they were unable to withstand the high prices that are driven by increasing demand after the roaming epidemic.

The recently published OVO accounts, for the year 31 December 2024, show that they recorded an operating loss of 108 million pounds.

Compared to a profit of 1.1 billion pounds in 2023, with a lot of swinging to the loss in 2024 caused by the changes in the value of OVO energy trading contracts.

After paying 400 million pounds to lenders in January, OVO said it has a new £ 60 million loan from the Cheyne Capital Management, with a 12 percent due interest in a “variable” rate, on a compound basis.

In a press release accompanying the accounts, OVO said it showed a “year of progress”, which was extended through the software platform, Kaluza, to millions of clients around the world.

“We restore energy to customers and accelerate the transition to clean energy at reasonable prices,” said David Potris, CEO of the OVO Home Energy Department.