The group, which is one-third owned by French government, will be the biggest European utility to join the UK market for a decade and plans to challenge the big six suppliers with “a new model”, according to reports in the Financial Times.
The supplier has recruited a panel of advisers including former energy secretary Ed Davey and the chairman of BT Michael Rake. It will build its own consumer brand as an extension of its business supplying power to British businesses.
Engie UK chief executive Wilfrid Petrie told the newspaper: “We think there is some space for a new player who can come up with a new model. There is more value for us in helping manage energy demand than in supplying the energy itself. We are not going to be chasing millions of customers.”
Petrie added that Engie would be price competitive and “more transparent” than the big six, but have “stronger capabilities” than smaller entrants.
With revenues of £2.8 billion last year, the firm could increase pressure on the big six energy suppliers which currently hold 85 per cent of the market.
The entrance comes as UK government are keen to increase competition in the energy market and at the end of a two-year probe into how to make the market work better for consumers and increase engagement.