Spark Energy

Spark Energy
Industry Utilities
Founded 2007 (2007)
Headquarters Selkirk, Scotland
Area served
 United Kingdom
Key people
  • Chris Gauld (CEO)
Products
  • Natural gas
  • Electricity
Number of employees
 300 (2015)
Website www.sparkenergy.co.uk

Spark Energy is an electricity and gas supplier, based in Selkirk, Scottish Borders.

History

Spark Energy started in 2007 as a small start-up company.[1] The board's background was in the letting industry [2] and they started Spark Energy to fill a gap in the utility market to meet the needs of letting agents, landlords and tenants.[3]

The company was established by Canadian entrepreneur PJ Darling, after research into the utilities and property management markets.

Spark is currently based in a former converted mill building in Selkirk after moving to the premises from Edinburgh in 2008.

The company made its first profit in 2013.[4] In January 2014 the firm signed a deal with Morgan Stanley.[5] Further growth occurred, which the company attributed to investment in its customer services and marketing.[4] Some rebranding also took place, including the introduction of the tagline 'Bringing Energy to Life'.[6] In Spring 2014, Chris Gauld was appointed as chief executive, succeeding Canadian-born entrepreneur PJ Darling who had founded the company.[7] In 2014 they were placed 23rd on the Sunday Times Fast Track 100, the highest-ranked Scottish company on the list.[8]

Spark has a long relationship with both Scottish Enterprise and the Scottish Investment Bank, with the latter having invested around £855,000 with the company since 2008.[9]

In 2015, Spark Energy reported a turnover of more than £80 million.[10]

As of July 2015 the company thought to be one of the five largest employers in the Borders, with over 300 staff based at their offices in Selkirk in the Scottish Borders,[1] 120 of whom are in customer care.[11] In August 2015 the company recruited three senior executives, increasing the size of its leadership team.[3]

The company was granted a temporary derogation from regulator Ogrem from 22B.2(b) and paragraph 4 of SLC 22B of its gas and electricity supply licences in respect of the Affordable Social Housing Prepayment Tariff.[12]

In June 2016, the company announced that a management buyout, led by CEO Chris Gauld and CFO Hamish Osborn, was close to completion.[13]

Issues

While establishing itself in the marketplace, the company had attracted some complaints.[14] Their business model meant that tenants did not get to choose their supplier, with Spark Energy inheriting customers from property owners.[15] BBC Radio 4’s You & Yours consumer programme revealed that Spark Energy employees had posed as some of these customers, moving people with chronic debts to other energy firms without their knowledge, using their personal details.[15] In 2015 they were fined £250,000 by Ofgem, after they were judged to have mistreated customers during the 2010-2013 period.[11] In the 2014 Which? Switch energy satisfaction survey, Spark Energy outranked all of the "big six" providers.[7]

References

  1. 1 2 "Spark set to take on 60 new staff". Selkirk Weekend Advertiser. 24 July 2015. Retrieved 21 November 2015.
  2. ↑ "Chris Gauld, co-founder, Spark Energy: plugged in to power". The Financial Times. 12 April 2016. Retrieved 12 April 2016.
  3. 1 2 Wright, Scott (13 August 2015). "Spark Energy launches job drive". The Herald. Retrieved 21 November 2015.
  4. 1 2 "Spark Energy sees turnover rise sharply". The Daily Telgraph. 26 May 2013. Retrieved 13 January 2016.
  5. ↑ Jeff, Dominic (23 January 2014). "Spark Energy lands Morgan Stanley contract". The Scotsman. Retrieved 21 November 2015.
  6. ↑ West, Gillian (15 April 2014). "Spark Energy rebrands to take on the 'Big Six' following Morgan Stanley deal earlier this year". The Drum. Retrieved 21 November 2015.
  7. 1 2 McConnell, Ian (25 June 2014). "Scottish Investment Bank funding for Spark Energy up to £855,000". The Herald. Retrieved 21 November 2015.
  8. ↑ Argo, Andrew (8 Dec 2014). "Growth of Forfar-based RMEC earns recognition in Sunday Times Virgin Fast Track 100 league table". The Courier. Retrieved 21 November 2015.
  9. ↑ "Spark Energy plugs in to a bright future". www.scottish-enterprise.com. Retrieved 2016-01-19.
  10. ↑ Wright, Scott (24 January 2015). "Spark sees profits soar beyond £1 million". The Herald. Retrieved 21 November 2015.
  11. 1 2 "Selkirk firm Spark Energy to pay £250,000 for rules breach". BBC News. 16 February 2015.
  12. ↑ "Energy watchdog sanctions new pre-payment tariff | News | Inside Housing". www.insidehousing.co.uk. Retrieved 2016-01-19.
  13. ↑ "Management buyout bid at Selkirk-based Spark Energy". BBC News. Retrieved 2016-07-28.
  14. ↑ "Selkirk-based Spark Energy investigated by Ofgem". BBC News. 28 June 2013.
  15. 1 2 Neal, John (23 December 2013). "Spark Energy 'impersonated customers' to remove 'debtors'". You & Yours. BBC.
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