Network Data is rumoured to have invested £3 million in the HIPs scheme and has sold franchises for energy assessors across England and Wales. A worried appointed representative (AR) of Network Data, who wished to remain anonymous, stated that if franchisees started to pull out because of the delay to the scheme, the company could face problems.
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Under the terms of the franchise contract, if HIPs did not go ahead, the franchisee could get a refund. The basic package is £8,000 for a two-year contract.
The AR said: “HIPs are not going ahead in the proper way, so there could be claims for refunds from franchisees and I believe Network Data has sold quite a few hundred. It could be in trouble even if it does go ahead with HIPs, because business will be a fraction of what was expected. It is going to have major problems and I am concerned about the knock on effects of this as an AR.”
However, Richard Griffiths, chief executive of Network Data Holdings plc, said: “The fact is that since the government announcement on HIPs on 22 May, we’ve not had a single franchisee ask for a refund and we continue to get money in from new franchisees. We have sold franchises in 60 per cent of our 225 areas in England and Wales and we are selling areas every week.”
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Griffiths conceded the delay was a financial set back, but added: “The money has been spent and we wouldn’t have done that if it was going to cause financial difficulties.”
