French Power Supplier Hydroption in Receivership as Costs Surge

Hydroption, a small French power supplier based in Toulon on the French Riviera, was placed in receivership by the city’s tribunal last week, according to the website of the commercial court.

Following French retailer E.Leclerc’s decision to halt supplying electricity this month, Hydroption’s struggle is a fresh sign that soaring gas and power costs may put several suppliers with weak balance sheets out of business. That’s been the case with more than a dozen energy providers just in the U.K. since August.

Hydroption was surprised by the rebound in demand when the coronavirus pandemic eased, forcing it to buy power ...