According to the Vastelastenbond, four energy suppliers that supply energy in the Netherlands are struggling with a ‘negative solvency’, which means that they are ‘vulnerable to financial setbacks’. These are DGB, Gulf Gas and Power, Mega Energie and Budget Energie.
At the end of last year, six energy companies that were not doing well in terms of solvency collapsed.
“Based on the annual figures for 2021, four companies can be noted with negative solvency,” the Vastelastenbond reports. ‘It concerns DGB, Gulf Gas and Power, Mega Energie and Budget Energie. Mega Energie’s solvency in 2021 is the lowest of all the parties surveyed. This newcomer, who has been active in the Netherlands since the end of last year, also supplies energy in France and Belgium.’
Bankrupt
Solvency is used to gain insight into the financial health of a company and indicates the extent to which companies are financed with equity. Large equity capital means more financial buffers. With a negative solvency, a company can absorb fewer financial blows. It is more difficult to borrow money or get credit with a low solvency, so a small loss can already cause an energy supplier to go bankrupt.
Higher monthly amount
When an energy supplier goes bankrupt, security of supply is guaranteed. So you will not be without electricity or gas. It is possible that you suddenly have a higher monthly amount with a new energy company, due to higher rates.
Five more with low solvency
When assessing solvency, the Vastelastenbond looked at the annual figures filed by energy suppliers. Five energy suppliers have a positive but low solvency. Eleven energy companies have good solvency. These include Eneco, Pure Energie, Greenchoice, Vattenfall, Powerpeers, Delta and Essent. With a percentage of between twenty and sixty percent, these energy companies score the highest on solvency.