A MAJOR energy supplier with 4.5 million customers is exploring the sale of the company.
Ovo Energy, Britain’s fourth-largest energy company, is lining up bankers to help with a strategic overhaul of the company.
It is clear that the energy supplier wants to attract new investors for refinancing and assess a complete sale of the company.
However, the company’s strategic review is expected to take several months.
This means that nothing changes for customers during this process and it is important to note that the company is not going out of business.
Customers who have a gas and electricity subscription with the company will continue to receive their services as usual.
Ovo Energy was founded in September 2009 by Stephen Fitzpatrick and provided energy tariffs to over 700,000 households in 2017.
The company now supplies 4.5 million households in the United Kingdom with gas and electricity.
City sources told Sky News this weekend that Ovo is set to hire Rothschild to help conduct a full strategic review of the business.
Ovo is said to already be in discussions with existing borrowers to raise capital.
Major shareholders include Mayfair Equity Partners, Morgan Stanley Investment Management and Mitsubishi Corporation.
A complete sale of the company is also on the table.
However, insiders say this is an unlikely outcome at this point.
Ovo declined to comment.
The supplier’s meteoric rise was marked by the acquisition of SSE Energy Services for £500 million in 2019.
By January 2024, all remaining SSE customers would be integrated under the Ovo brand.
Ovo is not the only energy company to undergo a strategic review in recent months.
Shell agreed last September to sell its domestic energy and broadband businesses to Octopus Energy.
At the time, Shell Energy provided domestic gas, electricity and broadband services to approximately two million customers.
The suppliers completed the sale in the fourth quarter of 2023.
The last major supplier to put its domestic arm up for sale was SSE in 2019.
What energy bill assistance is available?
THERE are several ways to get help paying your energy bills if you are struggling.
If you get into debt, you can always approach your supplier to see if they can impose a repayment plan on you before imposing a prepayment meter.
This means that you pay off your debt in installments, spread over a certain period.
If your supplier offers you a payment plan that you don’t think you can afford, contact them again to see if you can negotiate a better deal.
Several energy companies have subsidy schemes available for customers who have difficulty paying their bills.
But the eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers who are struggling to pay their energy bills could get grants of up to £1,500.
British Gas is also providing assistance through its British Gas Energy Trust and Individuals Family Fund.
You do not need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power are also all offering grants to struggling customers.
Thousands of vulnerable households are missing out on additional help and protection by not signing up to the Priority Services Register (PSR).
The service provides support to vulnerable households, such as the elderly and the sick. Some of the benefits are that you will be warned in advance of power outages, that you will receive free gas safety checks and that you will receive extra support if you are having difficulty.
Contact your energy company to see if you can apply.
IN OTHER NEWS
Millions of Tesco shoppers can now get free Clubcard points worth up to £50 with Ovo Energy.
Both new and existing Ovo Energy customers can earn 2,500 free Tesco Clubcard points by simply linking their accounts online.
The 2,500 Clubcard points can be converted into a £25 voucher to spend at Tesco, or can be doubled in value to £50 when redeemed at over 100 Clubcard Reward Partners.
These partners offer a wide range of rewards, including family outings, discounts at popular restaurant chains and a variety of fun experiences.
To qualify for this offer, customers must pay by direct debit and have a smart meter installed.
The news comes as Ovo Energy launched its own loyalty program called Ovo Beyond.
This offer allows customers to unlock up to £1,500 in savings and discounts on selected partner products and services.
This includes a discount on smart thermostats, free maintenance on your central heating boiler and a 30% discount on repairs to your heating and plumbing.
Customers will also have the opportunity to earn free miles and bill credit that can be redeemed in the future when they upgrade to an electric vehicle, install solar panels and more.