ESB Energy merges with So Energy
Competition between the UK’s
green energy suppliers is heating up after ESB Energy acquired a 75% stake in So Energy. The two businesses are due to merge under the latter’s brand and create a brand new green supplier.
Why did ESB Energy acquire So Energy?
The most common way for an energy supply company to grow is via acquisitions of competitors. By purchasing the 75% stake in So Energy, ESB will merge its portfolio to take its customer base above 300,000, a 35% increase.
Such a move comes with challenges however as the management of the new company will have to ensure that it can handle such a large influx of new customers. Maintaining good customer service can be a challenge for challenger suppliers following such a merger.
ESB has said that it is up to the task as the new partnership will see customers benefitting from both companies’ customer-centric values. The fact that both claim to be green suppliers will also appeal to the more eco-minded of energy consumers.
So Energy CEO Simon Oscroft said: “This new, supercharged So Energy now has the backing and resources to become the next big green energy supplier in the UK. We wanted a partner that shared our values and vision to scale our business in a sustainable way and develop more industry-leading net-zero solutions for our customers. ESB's resources, strong heritage and significant green energy investments - including their EV charging infrastructure and wind generation portfolio - will enable us to do this. I would also like to wholeheartedly thank our shareholders who have helped us on the So Energy journey so far.”
Also read: Acquisitions and mergers have been the biggest form of energy supplier growth
A new green supplier
With more and more energy suppliers shifting their focus to green energy the merger between ESB and So Energy will see a new big hitter enter the increasingly competitive market.
Energy suppliers that aren’t focusing on green energy could be losing an edge as more published surveys reveal that the public is growing increasingly concerned over climate change. Energy suppliers cannot ignore this shift in customer expectations.
A recently published Ipsos Mori poll showed that public concern over climate change doubled in August with a 16% rise in the previous month. Footage of wildfires across Europe and the USA and news reports on Hurricanes and other weather events are the most likely cause.
Both ESB and So supply 100% renewable energy with So Energy recently launching a solar and battery storage solution for its customers.
The merger comes at a time where concerns over small suppliers are growing. Some experts are predicting several businesses will go bust this winter due to rising wholesale energy prices and the passing of payment deadlines for several obligations and schemes.
Also read: Worries grow over possible wave of small energy supplier failures in October
Looking to enter the UK energy market? Dyball Associates team of energy market consultants can guide you through the steps to get qualified and attain your gas or electricity licence.
Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.
Further Reading
What are the Digital Tools an Energy Supplier should use to attract more customers?
What is the Warm Home Discount Scheme and what does it mean for energy suppliers?
Dyball Associates are proud to help new supply businesses successfully launch in the UK market.
Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers to get set up and start supplying.
For more information on how to start and manage an energy company, get in touch with Dyball Associates today.
More articles
Latest News
© 2022, Dyball Associates Limited. All Rights Reserved.
Web design by CW.
