Rescue deal hopes after Spark Energy’s collapse

SPARK Energy Supply has become the seventh energy company to collapse this year, leaving Ofgem, the industry regulator, looking for a new supplier for the firm’s 290,000 customers.

KPMG was appointed as administrator of the energy supplier yesterday 48 hours after rival Extra Energy also went bust, leaving 100,000 households in the lurch.

However, Spark’s parent company last night said it had agreed a conditional sale with larger rival Ovo Energy.

“If successful, it would mean Spark becomes a stand-alone part of this large independent supplier – operating from our offices in Selkirk, Edinburgh and Horsham,” a spokesman said.

Ovo Energy confirmed the deal, adding that it intended to propose to Ofgem to take over their customers.

“We have been working with the management team in Selkirk to ensure Spark Energy jobs will be protected and customers’ services will not be disrupted,” an Ovo spokesman added.

Ofgem yesterday confirmed it would put in place a “safety net” procedure and appoint a new supplier to take on Sparks’ customers.

Mary Starks, Ofgem’s executive director for consumers and markets, said: “Although we have seen a number of supplier failures this year, our safety net procedures are working as they should to protect customers.”

Customers of failed energy firms are advised to take a meter reading but not to attempt to change supplier until Ofgem has appointed a new firm.