Canadian Retail Supplier With U.S. Arm Winding Down Operations
August 3, 2022 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Link Energy, a Canadian retail energy supplier, is winding down operations
Link Energy had previously announced an intent to enter the U.S. retail market, and an affiliate had obtained FERC market-based rate authority, but it was not clear if Link ever began retail operations in the United States. The entity Link Energy Incorporated has filed to relinquish its FERC MBR authority.
A recent letter to customers from Link Energy CEO and Co-Founder, Wayne Burke states in part:
"The COVID-19 pandemic rocked our business financially. It got worse when energy prices started to spike dramatically in Alberta in early and mid 2021. Then it got even worse when the conflict in Europe began.
"My Co-Founder and I put in all the additional capital we could in mid-2020 and our banker allowed the Link business to continue to borrow more and more money through 2020 and 2021 so we could try to survive the storm.
"We also tried throughout this time to find an equity investor or buyer for the business who could keep the dream and the company alive. After innumerable conversations and rejections we must admit that we have exhausted all viable options.
"So, we are sadly winding down the Link Energy business. It is not yet clear since there are many moving parts, but we will likely have to declare bankruptcy given how much debt we have taken on trying to survive the last couple of years.
"We decided that the right thing to do would be to give notice to our customers as early as possible so we have been sending emails, calls and letters by mail and will keep doing so."
Burke also announced that, "we have set up an affiliate with a strong local partner, [retail supplier] Sponsor Energy," under which the Link brand will remain alive as a trade name of Sponsor Energy.
"For customers with variable rates, they have been moved over with no change to prices or terms in accordance with their agreements," the letter states
Sponsor Energy is not acquiring the existing fixed price Link customers and contracts, but customers may sign up with Sponsor Energy or choose another retail supplier