POWER supplier Spark Energy has signed a “landmark deal” with Morgan Stanley Commodities that will allow the Selkirk-based firm to go head-to-head with the “big six” gas and electricity brands.
The agreement means all of the company’s gas and electricity will be bought through the investment bank, giving it better access to wholesale markets.
The deal comes after Spark faced allegations last month of wrongdoing over the way it dealt with debtors.
Managing director Chris Gauld said: “This is a landmark deal for Spark, which allows us to compete with the big six energy companies on a more-level playing field.”
He added that buying its energy through Morgan Stanley will facilitate further investment into the business, following £1.4 million already spent on improving customer service.
The deal also provides increased stability against wholesale price fluctuations.
Spark, which was launched in 2008 and now employs 200 people, is being investigated by energy watchdog Ofgem and the Information Commissioner’s Office in England over allegations it systematically impersonated customers who hadn’t paid their bills in order to offload them on to other energy suppliers.
The probe came after BBC Radio 4’s You & Yours consumer programme revealed that Spark employees were told they could switch “chronic debtors” without their knowledge, using their names, addresses, bank account details, dates of birth and telephone numbers to access the big six energy firms’ websites.
The company said it has ended the practice and added that its finances and jobs are secure despite the investigations.
It now focuses on the residential letting sector, working with 200 property managers.