Green Deal firm collapsed owing £2.6m

Dozens of installers are among those owed £2.6m by the collapse of a Green Deal assessor over the summer.

In August, Nationwide Energy Services (NES), owned by Neville Wiltshire from the BBC’s The Call Centre (pictured), appointed administrators citing “cash flow problems” due to a lack of work under the government’s Energy Companies Obligation (ECO) scheme.

Last week a report by the accountants Deloitte, filed at Companies House, revealed the firm went under owing £2.6m to hundreds of trade creditors, many of which were Green Deal installers.

The two largest single creditors were Green Deal installer JCM Heating and Renewable Limited, which was owed £311,372 and Green Deal assessor Northern Gas Heating, which was owed £366,061.

The firm owed a total of £5.8m, including £1.8m of “provisions and accruals” and £553,260 in tax to the Treasury.

In its most recent set of accounts for the year to 31 March 2013 the firm reported a pre-tax loss of £96,714 on turnover of £28m.

NES was set up in 2005 to provide energy assessments and free energy efficiency retrofits through the government-funded Carbon Emissions Reduction Target (CERT).

It downsized after the scheme was replaced by the ECO and Green Deal at the beginning of 2013.

In a statement in August the administrators said: “The delays in launching the ECO scheme along with significant limitations in its coverage and a lack of a consistent energy policy from the government have led to a major reduction in funding during recent months. 

“Despite efforts made by the directors to secure new contracts, the lack of sales has led to cash flow constraints and so reluctantly, the directors have had no option but to cease trading and to appoint administrators.”

Allan Durning, director of insulation consultant APD Consulting, said installers felt they were “carrying the can” for the collapse of Nationwide.

“The sentiment from installers is why are these middle men, agents, going under and leaving us out of pocket?

“There’s something badly wrong with this ECO and Green Deal situation. Installers are all a bit battered and bruised.”

JCM Heating and Renewables declined to comment. Northern Gas Heating has been contacted for comment.