Spark Energy customers moved to a new supplier after company reaches deal with Ovo

Ovo Energy has come to the rescue of 290,000 customers after its former rival Spark collapsed last week.

The company will serve the customers through its own license, but keep Spark’s name and staff after acquiring the business, a spokesperson told City A.M.

Customers will remain on the same tariffs they had with Spark, Ofgem, which appointed Ovo to take over the accounts, said.

On Friday, Spark became the seventh energy provider to go out of business so far this year, throwing its customers into uncertainty.

Earlier in the week Ofgem had said it was looking into the business over a £59m black hole in a green energy fund which Spark was meant to pay into.

Spark told The Herald earlier this month that it was unable to pay its $14.4m bill from the renewables obligation scheme, citing pressure from the government’s energy price cap and increased wholesale energy prices.

The regulator has also said it is investigating another provider, Economy Energy, for its failure to pay into the scheme, and was demanding payment from URE Energy and Eversmart.

There is no suggestion from Ofgem that URE and Eversmart are in financial trouble. 

However experts last week told City A.M. that the renewables obligation scheme is the often last thing that businesses pay into when settling their debts.

Spark’s £14.4m debt to the scheme will now be spread across other suppliers, Ofgem said.

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 are delighted to have been able to bring Spark into the OVO Energy Group, securing a good outcome for their customers and the team.”