Fast-growing Bristol energy firm OVO is to take on the 290,000 customers of Scottish rival Spark Energy, which has gone out of business.
OVO has also acquired Spark’s operating company – with more than 300 staff based mainly at Selkirk in the Scottish Borders – and will retain the Spark Energy brand. Spark also has staff in Edinburgh and Horsham, Sussex. 
The deal, financial details of which have not been disclosed, does not include the part of the business that held the energy supply licence.
OVO, which employs around 900 in Bristol and has nearly 1.5m customers, will now operate Spark Energy under its own supply licence.
Spark became the seventh UK energy provider to fail so far this year. It was formed in 2007 and grew to become the leading energy supplier for tenants across the UK, working with letting agents to get tenants’ electricity and gas set up as simply as possible.
OVO was launched in 2009 as a small, independent UK gas and electricity supplier, and has since grown rapidly to become the UK’s largest independent supplier. Over the past two years it has made a spate of acquisitions to diversify from its core energy supply market towards becoming an energy services company.
The takeovers have included US firm VCharge, which has developed systems that make transmitting renewable energy more reliable, and CORGI HomePlan, the UK’s third-largest home service provider.
OVO chief executive Stephen Fitzpatrick said: “The energy sector is going through a major change and many companies, big and small, are struggling to adapt.
“We are delighted to have been able to bring Spark into the OVO Energy Group, securing a good outcome for their customers and the team.
“We will combine OVO’s innovative technology and focus on customer experience with Spark’s unique network of partnerships to bring greater products and services to more households around the UK.”
Under the terms of the deal, OVO will not have to take on a £14m ‘renewables obligation’ owed by Spark to Ofgem, the energy regulator, although it will honour all outstanding credit balances, including refunds due to customers who have left Spark Energy.
Spark chief executive Chris Gauld described the deal as “great news”. He added: “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.”
Ofgem chose OVO to take over Spark under a programme that ensures customers of failed energy suppliers do not suffer any lose of service.
Ofgem executive director Mary Starks said she was pleased with the deal and stressed that customers would stay on the same tariffs.
“Their credit balances will be honoured and their energy supply will continue as normal,” she said.
“OVO Energy, under the Spark Energy brand, will be in contact with customers over the coming days with further information.
“Once the transfer has been completed, customers can shop around for a better deal if they wish to.”
The Bristol office of transatlantic law firm Womble Bond Dickinson advised OVO on the deal. Its team was led by partners Chris Towner and Tom Fitzpatrick, who provided energy and corporate advice respectively.
