Energy company Mark Group has entered administration after struggling with heavy financial losses.
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Mark Group, which was only bought by its United States parent in July, laid the blame for its collapse squarely at the feet of government, which has announced a raft of cuts to energy efficiency subsidies since May’s general election. Mark Group said its managers have bought the business from SunEdison on Wednesday morning but after taking advice have chose to put it in into administration.
“The turnaround plan, which was already underway, focused on solar PV (photovoltaic) but the Government’s recent policy announcements mean this is no longer viable”.
A new study published by Solar Trade Association has estimated that 184 jobs in the solar energy sector in Knowsley and its supply chain are under threat after The Department of Energy and Climate Change proposed to cut the tariff paid for electricity generated by solar rooftop panels from 12.4p to 1.6p.
Solar Power Portal understands that staff at the Mark Group had not been informed of the situation when SunEdison announced its decision to analysts during a conference call, and were instead told that their jobs were at risk later on in the day.
“The ongoing losses of the business meant (administration) was our only option”, a Mark Group statement said.
The administrator said that “the withdrawal of public subsidies is a contributory factor to the failure of the business”, but added that it also “faced other challenges, and attempts to diversify the business were also ultimately unsuccessful”.
Energy and climate change secretary Amber Rudd said then: “Our support has driven down the cost of renewable energy significantly”.
Commenting on the latest development, Greenpeace United Kingdom chief scientist Dr Doug Parr said: “For all his rhetoric about building, it’s not scaffolding George Osborne is bringing to Britain’s clean energy sector but a wrecking ball”.
Alasdair Cameron, Friends of the Earth energy campaigner, said: “These huge job losses are likely to be the first of many as Government attacks on efforts to build a low-carbon economy begin to bite”. Evidence is growing that the Chancellor’s policies are putting people out of jobs, damaging investment, and harming one of the country’s most promising industries.
“The Chancellor should heed the warnings from the CBI and others about the damage he is doing to investment confidence at a time when we face the prospect of an energy security crisis”.
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“The government’s short-term thinking on bills is condemning hardworking families to a future of higher energy costs”.
