Source: site
Debt collection agencies have started hounding Harvest Energy dealers demanding repayment of unpaid invoices.
Harassment began this week and Prem Uthayakumaran, from Prehybrid and spokesperson for the Harvest Dealer Group, says he’s had five telephone calls a day and emails all demanding payment. He is now worried that the debt collection attempts may jeopardise the deal with Essar to supply the Harvest sites.
In an email to the debt collection firm, Uthayakumaran wrote: “The persistent daily contact from the debt collector demanding repayment of funds without any response to the alleged contractual breach is deeply concerning. This situation is likely to exacerbate the strained relationship between dealers and Harvest.”
At the beginning of October, Uthayakumaran wrote to the Department for Energy Security & Net Zero, asking for help regarding the situation with Harvest.
On October 24 he received a response that said: “We are disappointed to hear of the ongoing difficulties you are facing with fuel supply from Harvest. I recognise the impact this is having on your business and that of the other dealer-owned dealer operated forecourts in a similar position with Harvest.
“The Department of Energy Security and Net Zero is not able to intervene in commercial matters related to other parties. However, we understand that Harvest have sent a letter to Harvest-branded dealers indicating that their contracts can now be picked up by EET (Essar) on the same terms of supply, and that they are in discussion with EET to offer the same deal to Total-branded dealers. I hope that you see a resolution in short order.”
Uthayakumaran says: “The recent development of the EET takeover has provided a sense of relief to the majority of us. However, I am aware that some dealers still harbour doubts about the feasibility of this transition.
“While welcoming Essar’s commitment to resolve the situation, there has been no progress and we have many unanswered questions in this complex and manmade Force Majure forced upon us.”
And in an email to members of the Harvest Dealer Group, he urges fellow dealers to be aware of their contractual rights, especially if they are presented with a replacement contract (novation).
He says: “Mutual agreement is essential for any novation. You have the right to participate in the decision-making process. You have the authority to choose a brand. You can discuss the possibility of a free-tie agreement.
“Furthermore, it is crucial that you thoroughly understand all the details of any novation you wish to pursue. I acknowledge that there may be conflicting opinions, and this is completely understandable. Ultimately, it is your business, and you have the right to make the decisions that best suit your interests.”
The dealer group now covers 57 sites and Uthayakumaran says its future remains on course; he is keen for all the dealers to get together in a face-to-face meeting.
“I believe that we should continue to stand united and understand the legal advice we have received. While the cloud may be beginning to clear, it is not yet fully lifted. Where necessary, we should continue to exert pressure to expedite the decision-making process.”
He adds that taking legal action is a lengthy process, but they have gained valuable insights from three law firms.
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