Yu Group becomes supplier of last resort for Ampower

Business energy retailer Yu Group has become the supplier of last resort (SoLR) for the customers of recently failed Ampower.

Although there is yet to be an official announcement from Ofgem, Yu Group revealed the appointment via the London Stock Exchange regulatory news service this morning (8 November).

Ofgem confirmed the disruptor brand’s failure last week along with those of Omni Energy, MA Energy and Zebra Power.

Ampower supplied almost 8,200 predominantly electricity business sites and Yu Group said it is confident it will retain a “significant proportion” of the non-domestic customers, meaning the deal will increase its own meter portfolio by 38%.

Although Yu Group brands itself as a business retailer, the company told Utility Week the majority of Ampower’s small domestic portfolio are landlord-led arrangements which it has the capability to take on as well.

Yu Group is forecasting the deal will see its revenues immediately increase by more than £7.5 million per month.

It said it has already begun the process to hedge for the increased numbers of customers and that it will seek to recover some of the costs incurred by its appointment via the Last Resort Supply Payment levy.

Bobby Kalar, group chief executive, said the customers had already been migrated onto Yu Group’s operating platform over the weekend with a “negligible impact” on its resources or capacity.

He added: “Our experience and track record means we are confident the customer transition will be seamless, quick and well communicated.

“Our robust hedging strategy and strength of balance sheet are underpinned by a proven business model and a solid and scalable platform. This gives the board confidence that we are well positioned to deliver a good blended mix of both organic and inorganic growth and we are proud to be in a strong position to allow us to play a part in supporting the industry.”