OVO Energy has pledged to retain Spark Energy’s operations and teams in Selkirk, Edinburgh and Horsham, after being appointed by regulator Ofgem to take on about 290,000 domestic customers served by the Borders-based business.
Ofgem moved last week to protect customers of Spark Energy, following the failure of the Selkirk company’s energy supply subsidiary. Spark Energy Supply ceased to be a supplier on Friday.
The regulator said yesterday that the appointment of Ovo to take on the customers “follows a competitive process run by Ofgem to get the best deal possible for the customers of Spark Energy Supply”.
Ofgem confirmed that, separately, Ovo Energy had acquired operating company Spark Energy. The regulator added that Ovo had retained the Spark Energy brand.
Ovo meanwhile revealed that Chris Gauld would remain as chief executive of Spark Energy, which employs more than 400 people in Selkirk and has specialised in supplying energy to the residential letting sector.
It added: “We look forward to working with him closely during this transition.”
Mr Gauld said: “This is great news. We will service our customers, under Ovo’s licence, from our existing offices, and continue to grow our niche model of partnering with leading letting and estate agent companies.”
The Herald revealed earlier this month that Spark Energy had missed a £14.4 million renewables obligation payment, with Mr Gauld claiming the UK Government’s price cap had caused “chaos” in the sector.
Ofgem noted customers transferring to Ovo would continue to be billed by Spark and be contacted by the Borders company’s customer service staff.
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