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2nd February, 2017

A copy of the correspondence to customers sent out by Earthmill’s Managing Director Steve Milner, providing an update regarding Endurance Wind Power.


 

Hi All,

 

I’m conscious that I haven’t sent an update out since December on Endurances insolvency and the various challenges this created.

 

Parts availability: 

In my view this was the single most important issue, for example: The E series consist of 7600 separate parts 80 of which are bespoke, ongoing access is critical for the machines maintenance scheduled or otherwise. Earthmill have been working with the 3 other authorised service providers (Aeolus, Natural generation and Silverford), pooling our resources to set up a part supply operation which we completed early January. This will give us a central UK facility that can access and source all the known parts for the E series and X series turbines. Our aim is to have the top 100 items in stock and on hand for our combined fleet of 700 turbines 

 

Endurance sale:

Grant Thornton were appointed as the Administrator for both the UK and Canadian business. They initially failed to find a buyer for the whole business as a going concern and have since broken the business up in to various parts to sell off.

A key part of the sale was the existing turbine parts inventory, within the UK operation there was over £600k of turbine parts which I’m very pleased to confirm we have successfully bid for. We are currently in the process of checking the inventory at the factory and transferring across to the new parts operation. This gives us a great starting inventory for the parts operation.

 

Service and maintenance charges:

Our standard service and maintenance contract covers the costs of all scheduled servicing (excluding consumables and parts), however if you do require engineers on site outside of normal servicing, visits are chargeable. Fees are based on two climbing engineers on site, Initial call out charge and first hour on site:  £180, thereafter hourly rate of £110 Ex Vat. Our typical call out ratio is 1 site visit per turbine per year. That said 9 out of 10 issues can be resolved remotely via the office team, if however we do need to attend site we will always aim to discuss any charges with you in advance.

 

Insurance:

Certain insurers have been requesting that clients have an O&M contract in place with ourselves or one of the other ASP’s mentioned above before they will renew a policy, we have been in touch with all clients who needed a new contract if we haven’t spoken to you then please don’t be concerned as this just means you’re existing service agreement is sufficient.

 

Earthmill:

The new government was fairly quick to cut back on renewable support, which effectively stopped the on shore wind industry in its tracks. As result we have spent the last 18 months restructuring the business around the service and maintenance of existing clients.  We currently maintain over 250 Endurance turbines and have expanded our service team/office support to ensure that we are able to offer the support levels required.

 

If you do require any further information on your existing service contract or any other related issues please feel free to call the operations team on 01937 581011 or send us and email.

Regards

Steve Milner