COMPANIES & STRATEGIES - SERVICES & ADVISORY

Electricity and gas

Green energy supplier Eida succumbs to crisis



Eida will stop supplying electricity and gas, meaning its other activities will also have to close down. (Photo: Shutterstock)

Eida will stop supplying electricity and gas, meaning its other activities will also have to close down. (Photo: Shutterstock)

Beckerich-based green energy supplier Eida has announced that it will stop supplying gas due to price increases on the market after closing its electricity segment last year. 

Eida on 13 December announced that it would stop providing green electricity due to the bankruptcy of its Durch supplier Anode, but that it would continue to serve its customers with natural gas, provided by another supplier. However, 11 days later, the Luxembourg company told its customers that it would also stop supplying gas.

“Our gas supplier is still working. The problem is that it sells it to us at prices that are too high and sends us bills that we can no longer pay,” said Florian Rochko, head of operations. “In November 2020, the MWh of gas cost €13, in November 2021, €80. Since then, it has only gone up.”

Eida will still continue to supply its customers with gas until 14 January, when Sudenergie steps in as a replacement. Enovos in December took over the electricity supply while customers look for a new contract. While Enovos limits the last-resort supply mechanism to six months, there is no such limit for Sudenergie. Customers are free to terminate their contracts when they wish if they want to subscribe to another gas supplier.

Eida advises them to compare offers on the calculix.lu website.

Bankruptcy or dissolution

Eida’s core business has been the supply of green energy, although it does offer other services, such as the installation of charging points for electric cars. “Our ancillary activities are not sufficient to continue with the Eida brand,” said Rochko. “We have not yet decided on the future of the company: failure/bankruptcy or dissolution, each possibility has its financial implications. We are keeping all options open for the time being so that we can stop as best we can.”

Bankruptcy means that the company can no longer repay its debts, whereas dissolution or liquidation is about stopping its activities, which can be a choice or a consequence of bankruptcy.

Eida has seven employees, plus a manager who is active in two companies. “At the moment, everyone is working. We are still creating invoices, closing accounts. The team also remains available by email or telephone to answer customers’ questions.”

This story was first published in French on Paperjam. It has been translated and edited for Delano.