Total has signed an agreement to purchase the majority of Ørsted’s UK business to business gas and electricity customer base. Total has agreed to honour all customer and broker terms and conditions.
Total Gas & Power’ general manager Dave Cranfield comments, “We are delighted to have signed this agreement with Ørsted. It demonstrates our commitment to UK energy customers and the British energy market. We believe that by continuing to develop our product range as well as offer excellent service, we are well placed to supply all customers – large and small – with their current and future energy needs.”
The portfolio includes approximately 3,800 natural gas customers and 2,200 power customers with a contracted volume of 28 TWh. Ørsted will keep a small number of B2B customers in the UK, such as strategic long-term partners and customers to whom Ørsted delivers risk management products.
Ashley Phillips, managing director of Ørsted Sales UK, says, “We’re pleased to have signed this agreement and that Ørsted has found a new home for our B2B natural gas and power customers in the UK. The divestment is in line with Ørsted strategic plan, refocusing on key activities for the group in the future.”
Ørsted entered the British gas and power markets in 2012. With the company’s strategic focus over the last few years on building, owning and operating renewable generation assets, Ørsted has decided to significantly scale down its downstream operations.
This acquisition enables Total Gas & Power to move closer to their goal of increasing their renewable energy customer base. This is owing to 97% of the transferring power customers having green certificate backed contracts which will be honoured as part of the deal.
Closing of the transaction is expected to take place during winter 2020/21 subject to approval by the EU competition authorities.
Total Gas & Power has been providing UK businesses with energy since 1987. As part of Power & Gas Europe, its ambition is to supply 10 million business and domestic gas and electricity customer sites across Europe by 2025.