A MAJOR energy supplier with 4.5 million customers is exploring a sale of the business.
Ovo Energy, the UK’s fourth largest energy firm, is training bankers to help with a strategic review of the business.
The energy supplier is understood to be trying to attract new investors for refinancing and to consider a full sale of the business.
However, the strategic review of the business is expected to take several months.
Nothing will change for customers during this process and it is important to remember that the company is not going bankrupt.
Customers who have gas and electricity tariffs with the company will continue to receive their services as usual.
Ovo Energy was founded by Stephen Fitzpatrick in September 2009 and by 2017 was providing energy tariffs to over 700,000 households.
The company now supplies gas and electricity to 4.5 million homes across the UK.
But City sources told Sky News this weekend that Ovo was close to hiring Rothschild to help with a full strategic review of the business.
Ovo is said to be already negotiating with existing borrowers for a capital increase.
Its major shareholders include Mayfair Equity Partners, Morgan Stanley Investment Management and Mitsubishi Corporation.
A direct sale of the business is also on the table.
But insiders say that would be an unlikely outcome at this point.
Ovo declined to comment.
The supplier’s rapid rise to prominence was marked by its £500m acquisition of SSE Energy Services in 2019.
By January 2024, all remaining SSE customers will be integrated under the Ovo brand.
Ovo is not the only energy company to undergo a strategic review in recent months.
Shell agreed to sell its domestic energy and broadband arm to Octopus Energy last September.
At the time, Shell Energy provided domestic gas, electricity and broadband services to around two million customers.
The vendors completed the sale in the fourth quarter of 2023.
The last major supplier to put its domestic branch up for sale was SSE in 2019.
What help with energy bills is available?
THERE are several different ways to get help paying your energy bills if you’re struggling to make ends meet.
If you fall into debt, you can always contact your supplier to see if they can give you a repayment plan before they put you on the downpayment meter.
This involves paying back what you owe in installments over a set period of time.
If your supplier offers you a payment plan that you don’t think you can afford, talk to them again to see if you can negotiate a better deal.
Several energy companies have grant schemes available for customers who are struggling to meet their bills.
However, eligibility criteria vary by supplier and the amount you can get depends on your financial situation.
For example, British Gas or Scottish Gas customers who are struggling to pay their energy bills can receive grants worth up to £1,500.
British Gas also offers help 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 also offer grants to struggling customers.
Thousands of vulnerable households are missing out on additional help and protection by not registering on the Priority Services Register (PSR).
The service helps support vulnerable households, such as the elderly or ill, and some of the benefits include early warning of blackouts, free gas safety checks and more support if you’re struggling.
Contact your energy company to see if you can sign up.
IN FURTHER NEWS
Millions of Tesco customers can now get up to £50 worth of free Clubcard points with Ovo Energy.
New and existing Ovo Energy customers can get 2,500 free Tesco Clubcard points by simply linking their accounts online.
2,500 Clubcard points can be converted into a £25 voucher to spend in Tesco or double the value to £50 when redeemed at over 100 Clubcard Reward partners.
These partners offer a wide range of rewards, including family days out, discounts at popular restaurant chains and various entertainment experiences.
Customers must pay by direct debit and have a smart meter installed to be eligible for this offer.
The news comes as Ovo Energy launched its own loyalty program called Ovo Beyond.
This offer is designed to help customers unlock savings of up to £1,500 and discounts on selected partner products and services.
This includes discounts on smart thermostats, free boiler servicing and 30% off heating and plumbing repairs.
Customers will also be able to redeem free miles and bill credit to redeem in the future when they switch to an electric vehicle, install solar panels and more.