Spark's Bankruptcy Raises Questions for Lettings Market

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

Ovo Energy has confirmed it has entered into a conditional agreement to acquire Spark, the operating company of Spark Energy, after its supply arm ceased trading.

The energy company employs more than 300 staff at its headquarters in Selkirk but went bust after the company was given a £14m bill by the energy regulator Ofgem for non-payment of its renewable power obligation.

Ovo Energy has now submitted a proposal to Ofgem to take on Spark's 290,000 energy customers as supplier of last resort (SoLR).

The SoLR, appointed by Ofgem, acts as a safety net to ensure existing customers of the failed supplier aren't cut off.

An Ovo spokesperson said: "Ovo Energy can confirm we have entered into a conditional agreement to buy the operating company of Spark Energy, and we have also submitted a proposal to Ofgem to take over their customers."

"We have been working with the management team in Selkirk to ensure Spark Energy jobs will be protected and customers' services will not be disrupted."

The collapse of Spark represents just one of a number of energy companies that have gone bust in 2018. Others include rival firms Extra Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy.

Spark Energy is used by Glide Student, who relied on the company to supply its student tenants' gas and electricity.

In 2015 Spark Energy also became the preferred supplier for Split The Bills, DividaBill and Bill Hub, who allow tenants in shared houses to manage their bills more easily.


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