More than 600 jobs have been lost at energy brokers in the North East as soaring costs have limited their ability to find better deals for customers, it has been claimed.
The North East has a high number of energy consultancies, many started by former employees of Utilitywise, a pioneer in the sector which went into administration in 2019.
Last week Gateshead firm Northern Gas and Power announced that 77 jobs were at risk at the firm due to “unprecedented challenges to businesses across the world, particularly in the energy sector”. Now the company has said that 600 third party intermediaries (TPIs) have been lost in the North East in the past fortnight, with “many more at risk”.
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A spokesperson for Northern Gas and Power said: “If this lack of Government intervention continues, it could set the North East’s economy back decades, effectively killing off much of the expertise, innovation and competition in the market that has not only benefited businesses in the North East, but right across the country.”
He added: “Energy consultants bring many benefits, offering a more efficient route to market, stimulating competition, and driving down costs. The overall sentiment in the TPI industry is that we are being left without any direct support, which will ultimately lead to thousands of job losses – effectively killing off competition within the energy market.
“It’s important to acknowledge the vital role that TPIs fulfil in the energy market. This is a real levelling up opportunity for the new business secretary and we urge the government to take action now before it is too late.”
Business groups have this week welcomed the Government’s support on energy bills amid warnings that many firms had been struggling to stay afloat. But there have also been warnings that the current package is a “short-term fix” and that the global energy market is still uncertain.
The company has won support from Gateshead MP Ian Mearns, who has raised the issue in Parliament.
He said: “It’s not just businesses being impacted but the people that work for them. My constituency benefits from a number of businesses specialising in energy consultancy, who support all kinds of business with their energy contracts and who provide employment and income in the local economy.
“Hundreds of positions in the consultancy market in Gateshead have already been lost and we face further job losses at a time where many households are already struggling with the cost of living. If the Government is committed to this sector, they must provide clarity and urgent financial support to ensure that these businesses in Gateshead can continue to operate while the energy market is in crisis. Like many other sectors, the uncertainty is incredibly damaging to the hundreds of employees of these businesses in Gateshead and their families.”
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