Energy supplier Spark Energy is in talks over a merger after it missed a Renewables Obligation payment of £14.4 million, due by 31 October.
Chief executive Chris Gauld, who led a management buyout of the company in 2016, told the Herald newspaper that Spark had been in discussions with a “number of other energy companies” in recent weeks. He told the paper: “As a result, we are now in merger negotiations with another, medium-sized UK energy supplier and both of us believe this offers a long-term solution which would create a sustainable business of scale. However, we are taking nothing for granted.”
Spark Energy is a specialist in the rental market and in 2015 it paid £250,000 in penalties and redress after the regulator investigated customer service failings.