ESB Energy has taken a 75% stake in challenger energy supplier So Energy, with the two businesses to merge under the latter’s brand.
ESB Energy’s domestic customers are to be added to So Energy’s existing portfolio, taking the supplier to over 300,000 domestic customers and growing its customer base by 35%.
The partnership is set to benefit from both companies’ customer-centric values and green credentials and ESB’s resources and expertise, ESB said, while retaining So Energy’s brand will give the new entity a strong platform to grow and roll out new systems, services and products.
Both companies supply exclusively 100% renewable electricity, with So Energy having also recently launched solar and battery storage solution for customers.
So Energy co-founders Charlie Davies and Simon Oscroft are to retain their stakes in the business and continue in the executive team, which is to be headed by new CEO Monica Collings, who is currently managing director of ESB Energy.
“So Energy has achieved in a very competitive market, but one we are confident has excellent potential for our business,” Collings said.
The merger during a turbulent time for small suppliers, with three going bust this year including Hub Energy, Green Network Energy and Simplicity. Indeed, since 2018 over 20 suppliers have shuttered, including Yorkshire Energy, Tonik Energy, Effortless Energy and GnERGY.
Earlier this week, ESB Independent Generation came under fire after Ofgem found it had breached market manipulation rules between March 2019 and September 2020.