Dyball's Statement regarding media reports

In light of recent supplier failures and current market turmoil, Dyball Associates Ltd and its founder Andrew Dyball were contacted by the Mail on Sunday for comment on a proposed article. 

Ofgem Licence procedures and off-the-shelf companies

Ofgem is responsible for the scrutiny of Supplier Licence applications. Prior to January 2020, Ofgem permitted Supplier Licences to be sold as part of an off-the-shelf company purchase. Dyball Associates and our market competitors created and sold these companies adhering to the guidelines and processes of the industry bodies of MRASCo, Elexon and Ofgem.
 
Such companies challenged the supplier oligopoly within the market and promoted supplier competition and ultimately contributed to cheaper prices for UK businesses and Domestic households.
 
In January 2020, following a market review, Ofgem ruled that a Supply Licence could no longer be sold as part of an off-the-shelf company. Ofgem then proceeded to revoke supply licences from the unsold off-the-shelf companies of Dyball Associates and our competitors.
 
Since this date, all potential new supplier entrants who contract with Dyball Associates apply to Ofgem directly for a Supply Licence. They have to satisfy Ofgem that their business plan, processes and management team are worthy of market entry and that they have the required funding and industry expertise to successfully operate a supply business. Dyball Associates is not part of this licence application, we simply provide industry systems and services to the supplier, should they be successful in obtaining a Supplier Licence.
 
Neither Andrew Dyball nor Dyball Associates are ‘behind’ any Electricity or Gas Supply business that has ceased trading. We have no shares, Directorships, or salary from any failed business. When off-the-shelf companies are created Dyball Associates and Andrew Dyball are appointed as Director/Secretary to comply with Companies House regulations. Once an off-the-shelf supply business is sold both Dyball Associates and Andrew Dyball are removed from the company as part of the Share Purchase Agreement process.
 
As expressed by Kwasi Kwarteng in his recent House of Commons speech, it is not unusual for suppliers to exit the market around this time of year. 2020/2021 however has provided additional significant challenges which have created issues for several energy suppliers in the UK market.

Since the start of 2018 to 25/09/2021 - 29 suppliers have entered the SOLR process, of those failed suppliers only 7 of them were supported by Dyball Associates. The others have been supported by our market competitors.

Market Exit of Avro Energy Ltd, Green Supplier Ltd and Utility Point Ltd

Neither Andrew Dyball nor Dyball Associates were involved in the formation of AVRO Energy. Dyball Associates were contracted to provided industry systems to the company and the Gas and Electricity licences were issued by OFGEM in the normal manner via a direct application from AVRO Energy.
 
Utility Point and Green Supplier Ltd both purchased off-the-shelf companies from Dyball Associates Ltd. At the time when these were purchased, Ofgem permitted the purchase of a Supply Licence as part of the off-the-shelf company.
 
Although the Directors of AVRO Energy were new to the industry both Utility Point and Green Supplier Ltd were launched by owners with a wealth of experience in successful business operation and an abundance of Electricity and Gas expertise.
 
Why these companies failed and what liabilities they leave behind is impossible for Dyball Associates to comment on. Apart from providing these companies with some or all of their industry software we have no involvement with the companies or how they are run. That is between the Supplier and the industry bodies.

Avro Data and Technology Ltd investment in Dyball Associates

In early 2020 Dyball Associates Ltd were in discussions with several parties regarding the acquisition or part acquisition of Dyball Associates. As part of this tender process, Dyball Associates was approached by Jake Brown and Phil Brown with an interest in investing in Dyball Associates.
 
After evaluating all investment opportunities, Jake Brown and Phil Brown were selected and the acquisition of a 60% shareholding in Dyball Associates was accepted. This investment was made by Avro Data and Technology Ltd a company completely independent of AVRO Energy Ltd.

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Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers to get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.