Energy firm in administration
A TEES Valley electrical and mechanical contractor has gone into administration, with the loss of around 130 jobs.
Up to 50 staff and 80 contractors have been made redundant at AAG Swepco.
The firm, which is based at Belasis Business Centre and also has a regional office in Scotland, is a provider of a range of services to the water, rail, retail and commercial power production industries.
A spokesperson for administrators Tait Walker confirmed they had been appointed but could not comment further on the situation.
Equity finance firm NEL Fund Managers invested £600,000 in AAG Swepco in March to help the company expand its services. The team said it was waiting for further information from administrators.
AAG bosses were unavailable for comment.
The company’s main growth area was renewable energy - and experts claim more needs to be done to help kickstart the emerging sector.
The company’s demise comes as other companies are experiencing a turnaround in their fortunes, as community projects clamour for a slice of extra Government funding allocated to green energy schemes.
A £35m extension to the Low Carbon Buildings Programme (LCBP) phase two funding was announced in April, allowing charities, schools, the public sector and community groups the chance to get up to 50% off their renewable energy systems.
And next April, the Clean Energy Cashback scheme - a feed-in tariff that will pay users for both generating green electricity and any surplus put back into the National Grid - is expected to give another boost to the sector.
Sean Collier, from Bishop Auckland installers Access Renewables, said business was going well.
“We’re seeing signs of recovery now. Confidence among buyers has returned, but also there is a mad rush for certain projects to get in before Government funding runs out.”
John Barton, projects director at Wilton-based green experts Renew, said the Government incentives were on their way - but for the moment, awareness-raising about the benefits among consumers was most important.
“There is a lack of marketing,” he said. “Consumers don’t know what’s available in the renewables field, and there is conflicting advice.
“This applies on both a domestic and small-scale commercial level. The feed-in tariff due to come in next year will open up the markets, but the danger is that companies like AAG Swepco won’t be around.
“It’s disappointing that companies are going under at a time when opportunities are just starting to open up and we need installers and contractors.”
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