Centrica buys Nabuh Energy to expand the British Gas brand
Centrica, the owner of British Gas has purchased Sheffield based energy supplier Nabuh Energy as it seeks to expand the brand and return to growth after a torrid few years.
Nabuh Energy acquired
Centrica is looking to refocus on its core areas of gas and electricity supply by expanding the presence of its British Gas brand.
The company has been struggling in recent years as consumers jumped ship to smaller challenger suppliers and as it deals with negative headlines on its workers taking strike action over a controversial fire and rehire policy.
This combination of issues resulted in its financial results disappointing expectations and with British Gas experiencing its worst year ever. Since 2015, British Gas layoffs have numbered 17,500.
Nabuh Energy which is based in Sheffield currently has 36,000 customers and 70 staff will become a part of the British Gas supplier brand by the end of April.
The acquisition is just the latest purchase by Centrica following its purchase of Robin Hood Energy’s customer base last year and its gain of failed suppliers Simplicity Energy’s customer base.
“This latest deal forms part of the company’s strategy to focus on and invest in its core markets and comes as it seeks to return British Gas to growth,” said Chris O’ Shea, group chief executive of Centrica.
Also read: Acquisitions and mergers have been the biggest form of energy supplier growth
Renewable Obligation troubles
Last year Nabuh Energy landed in hot water with the energy regulator Ofgem when it missed the 31 October late payment deadline for its Renewables Obligation (RO) payments.
Nabuh Energy failed to pay £2.68m in RO payments, missing the original deadline and failed to provide sufficient assurances to Ofgem resulting in the company being issued with a Final Order.
British Gas said that Nabuh Energy will continue to provide its customers with gas and electricity, supplies will continue without interruption and prices and terms will remain the same.
Also read: Three energy suppliers receive Final Orders from Ofgem for unpaid Renewable Obligations Payments
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