Ofgem has appointed Ovo Energy to take over Spark Energy’s 290,000 customer accounts. Ovo said, “Through the purchase of the operating company we can ensure that Spark Energy will continue to serve customers through its existing team, with minimal disruption to service.
“We also look forward to growing Spark Energy’s market-leading network of partnerships in the lettings and other sectors.”
Ovo said it will honour customers’ outstanding credit balances, and refunds due to customers who have left Spark Energy. It has also committed to retaining Spark Energy’s operations and teams in Selkirk, Edinburgh and Horsham.
Chris Gauld, chief executive of Spark, said: “This is great news. It means Spark becomes part of a very successful large independent energy supplier. 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.”
Ovo bid for Spark Energy in Ofgem’s ‘supplier of last resort’ measure after Spark ceased trading but the process raised eyebrows. Ovo had already been in talks with Spark before the failure, but because took on the company under the SOLR safety net instead of acquiring it as a going concern, some of the cost of protecting credit is shared across the industry. Emily Gosden, energy editor at the Times, noted that Ovo would also avoid paying £14 million in green levies owed by Spark.