Spark Energy

About Spark Energy

Spark Energy was established in the United Kingdom in 2007, headquartered in Selkirk, Scotland. The company was founded by Canadian entrepreneur PJ Darling and co-founder Chris Gauld. Their collective background in the letting industry inspired the venture, which was designed to address a specific gap in the utility market by catering to the needs of letting agents, landlords, and tenants. Darling initiated the company following research into the property management and utilities markets, while Gauld was the primary leader during its initial growth phase. After Darling sold his stake in the business, Gauld was appointed CEO in the spring of 2014.

The firm's business model was centered on supplying gas and electricity specifically to the rental sector, managing utility supplies for property portfolios during void periods, and handling the associated administration for landlords and letting agents. This niche approach meant that tenants in properties managed by Spark's partners were often automatically enrolled with the supplier. The company generated revenue by supplying gas and electricity to its customer base of tenants and homeowners. By 2017, the company was supplying 221,878 properties and had a wholesale energy trading agreement with Macquarie to forecast and purchase energy. A significant milestone was reached in 2013 when the company reported its first profit. This was followed by a deal with Morgan Stanley in January 2014 and a ranking as the 23rd fastest-growing company on the Sunday Times Fast Track 100 later that year.

Despite its growth, Spark Energy faced significant challenges. In November 2018, the company ceased trading and entered administration, citing "increasingly tough trading conditions" and a failure to make a £14 million payment as part of the UK's Renewables Obligation scheme. At the time of its collapse, it served approximately 290,000 customers. The UK's energy regulator, Ofgem, appointed OVO Energy to take over Spark's customer accounts to ensure continuity of supply. OVO Energy acquired Spark's operating company and initially continued to use the Spark brand while migrating customers to its other brands like SSE. OVO also took on Spark's staff and offices in Selkirk, though these were later closed in 2020.