Bristol sells off energy customers and brand

Bristol City Council has announced it has sold Bristol Energy’s domestic customers and brand to Together Energy for £14m.

The sale will see the company acquiring 155,000 residential meter points plus the Bristol Energy brand and systems.

Last month, the council sold the business customer side of Bristol Energy to Yü Energy for £1.34m.

The local authority agreed to sell the company in June, after the current mayor of Bristol, Marvin Rees admitted it had faced unprecedented challenges since being established by his predecessor.

Together Energy prides itself on its social impact employing more than 90% of its staff from Scotland’s most deprived areas.
During negotiations, Together Energy committed to guaranteeing the jobs of 110 frontline workers who will now TUPE into the company and remain in Bristol.

Warrington Borough Council holds a 50% stake in the company.

Last week, Nottingham City Council sold the customers of Robin Hood Energy to British Gas.

‘There are great synergies between both companies and the acquisition is a natural fit to our growth strategy.  We are an employer with strong social ethics and in the current climate are delighted to have secured so many jobs,’ said Together Energy chief executive, Paul Richards.

Warrington Borough Council’s deputy leader and portfolio holder for finance, Cllr Cathy Mitchell, said: ‘We are really pleased that our initial seed investment in Together Energy has allowed the company to grow and prosper to the point they can make acquisitions such as this. This was very much the plan that we invested in.

‘Our green energy strategy sets out our commitment to work with a range of partners to address the climate emergency, tackle fuel poverty and create a greener future for our borough. Our partnership with Together Energy is one way we are doing that, so the growth of the company is good news for Warrington.’

Ed Reed, head of training at Cornwall Insight, said: ‘It is a turbulent time in the retail energy space at the moment, particularly for municipal backed licensed suppliers as this confirmation has come only days after the announcement that the Robin Hood Energy customer base has been sold to British Gas. However, it is not the end of council-backed supply entities, as several white-label arrangements are still in place. Indeed, Together Energy itself is 50% owned by Warrington Borough Council.

‘By acquiring the 155,000 customers, Together Energy will significantly boost its customer book. In the past few years, many suppliers have used this type of strategy to grow, changing the face of the retail landscape significantly in the process.’

Photo Credit – Comfreak (Pixabay)