Major energy supplier with 4.5million customers could be SOLD under new plans – what it means for you
A MAJOR energy supplier with 4.5million customers is exploring the sale of the business.
Ovo Energy, Britain's fourth-largest energy firm is lining up bankers to assist in a strategic review of the business.
It's understood that the energy supplier is looking to attract new investors for refinancing and assess a full sale of the business.
However, the strategic review of the business is expected to take several months.
It means nothing will change for customers during this process and it's important to note that the company is not going bust.
Customers who have gas and electricity tariffs with the firm will continue to receive their services as normal.
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Ovo Energy was founded by Stephen Fitzpatrick in September 2009 and, by 2017, provided energy tariffs to over 700,000 households.
The company now supplies 4.5million households with gas and electricity across the UK.
But city sources have told this weekend that Ovo is close to hiring Rothschild to assist with a full strategic review of the business.
Ovo is said to already be in talks with existing borrowers to raise capital.
Its major shareholders include Mayfair Equity Partners, Morgan Stanley Investment Management and Mitsubishi Corporation.
An outright sale of the business is also on the table.
However, insiders say this would be an unlikely outcome at this point.
Ovo declined to comment.
The supplier's rapid rise to prominence was marked by its £500 million acquisition of SSE Energy Services in 2019.
By January 2024, all remaining SSE customers would be integrated under the Ovo brand.
Ovo isn't the only energy company to have undergone 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, power, and broadband services to approximately two million customers.
The suppliers completed the sale in the fourth quarter of 2023.
The last major supplier to place its domestic arm up for sale was SSE back in 2019.
What energy bill help is available?
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But 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 struggling to pay their energy bills can get grants worth up to £1,500.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don't need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you're struggling.
Get in touch with your energy firm 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 simply by linking their accounts online.
The 2,500 Clubcard points can be converted into a £25 voucher to spend at Tesco or doubled in value to £50 when redeemed with over 100 Clubcard Reward Partners.
These partners offer a wide range of rewards, including family days out, discounts at popular restaurant chains, and various 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 programme dubbed Ovo Beyond.
The offering is said to help customers unlock up to £1,500 of savings and discounts on selected partner products and services.
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This includes discounts on smart thermostats, free boiler service, and 30% off heating and plumbing repairs.
Customers will also have the opportunity to bank free miles and bill credit to be redeemed in the future when they switch to an electric vehicle, install solar panels and more.