Dutch energy company DVEP puts freeze on new customers

UGI

12/10/2022 12:19

AMSTERDAM, Oct 12 (Reuters) - Energy company DVEP, a
Dutch subsidiary of United States-based UGI Corp  UGI.N , has
stopped accepting new customers, it said on Wednesday, citing
volatility on European energy markets following Russia's
invasion of Ukraine.
    Soaring gas and power prices have driven up margin call
requirements and burnt up cash for many European energy
companies, forcing them to secure extra funds from governments
and banks.  
    DVEP is a major provider of energy to Dutch schools,
including the University of Amsterdam, which said this month
that it was forced to change providers after being unable to
renew its contract with DVEP.
    "DVEP has decided not to accept any new customers in 2022 in
order to protect its current customers," the company said in an
e-mailed statement.
    "The current energy market is causing great challenges for
households and energy distributors, DVEP included."
    The company's difficulties were first reported by Dutch
newspaper Het Financieele Dagblad.
    The Dutch Consumer and Markets watchdog ACM, which oversees
energy companies, has not rescinded DVEP's licence, which it
does when an energy company faces insolvency. The agency did not
respond to requests for comment on DVEP.
    According to the Dutch Chamber of Commerce records, UGI
International Holdings BV, the subsidiary of the U.S. company
that holds DVEP and other Dutch assets, had 394 million euros 
($383 million) of equity at the end of 2021 on a balance sheet
of 1.25 billion euros.
    For 2019, the most recent year for which a DVEP filing was
available, the company showed a net profit of 5.7 million euros
on sales of 192 million euros.
    The University of Amsterdam said on Sept. 15 it had agreed
on a new energy contract with Vattenfall  VATN.UL  after being
unable to renew its contract with DVEP. The university expects
its energy costs to rise to 5 million euros annually from 1.7
million euros in 2021 as a result.
($1 = 1.0297 euros)
 (Reporting by Toby Sterling; Editing by Emelia
Sithole-Matarise)
 ((toby.sterling@thomsonreuters.com;))