Ovo chief executive Raman Bhatia stands down

Ovo chief executive Raman Bhatia is to step down from his role at the helm of the energy retailer.

Bhatia is leaving Ovo after two years as chief executive, having taken up the role in March 2022.

He was promoted to the CEO post having initially joined Ovo in January 2020 as chief operations officer.

Bhatia will stand down in the summer to take up an undisclosed leadership role outside of the sector.

An Ovo spokesperson said the company will announce succession plans in the coming weeks.

Bhatia said: “I am immensely proud of the work we have done to support customers, particularly as we’ve navigated some of the most challenging times the sector and country has faced.

“We have a strong leadership team in place and now feels like the right time for me to accept a new position as they lead Ovo into its next stage of growth, while remaining truly committed to its sustainability vision.”

Justin King, chair of the Ovo board added: “Colleagues will miss Raman’s perceptive leadership and his supportive presence. We are saddened by his departure and grateful for his leadership, but understand that it is the right time for him.

“We’re moving into our next chapter, and having met the leadership team in my first two weeks, I’m confident that they will seize this opportunity to lead us forward. Raman has our very best wishes in his new and exciting role, and the company bids him a fond farewell.”

Under Bhatia’s stewardship, Ovo completed the acquisition of SSE Energy Services, and the subsequent onboarding and integration of over three million customers onto the Kaluza platform.

The company recorded a £1.3 billion loss in its last declared full year results for 2022.

Following the loss, two of Ovo’s major investors increased their shareholding in the company. Following what was described by Bhatia as “one of the most challenging years for the sector” Mayfair Equity Partners and Morgan Stanley Investment Management upped their stake in a transaction worth £200 million.

Ovo has since been transferred to a newly incorporated entity, Energy Transitions Holdings, of which founder Stephen Fitzpatrick is a shareholder as is Mayfair, Morgan Stanley and Mitsubishi Corporation.

For year ending 31 December 2022 the company actually saw its revenues increase by more than £2 billion to £6.7 billion. Yet profits plummeted from £335 million in 2021 to a loss of £1.275 billion.

Ovo attributed the loss in part to falling wholesale prices which resulted in the value of its hedges decreasing. While this results in a large loss for 2022, the company said it will reverse once customers begin using the energy in the future.

The company blamed its adjusted operating loss of £96 million on the absorption of customer costs during a period of record high energy prices, including £50 million in support that it administered.