One of Britain’s small energy suppliers has been put up for sale after warning that competition from cut-price competitors threatens to stunt its growth. Flowgroup, an Aim-listed energy innovation and services company, has decided to “actively pursue” the disposal of Flow Energy, its household gas and electricity supply business, which has about 270,000 customer accounts. Flow Energy has grown rapidly since its launch in 2013 and is among the dozen largest challengers to the Big Six suppliers. Flowgroup’s chief executive is Tony Stiff, who founded Atlantic Electric and Gas, a small supplier that was bought out of administration by SSE in 2004. Flowgroup’s chairman is Clare Spottiswoode, the former director-general of Ofgas, the old gas industry watchdog. The company said Flow Energy’s margins had come under pressure as it had “p riced to compete with a range of new entrants offering reduced tariffs to customers to gain market share”. If the trend of cut-price new entrants continued, it warned its growth outlook for 2017 would be “more challenging”. Despite this, it said that the supplier was performing well and it had received approaches “expressing interest”.
Times 10th Feb 2017 read more »