Ovo Energy has today (18 September) announced it is expanding into the European energy market by investing in German supplier, 4hundred.
The Munich-based company, which offers a 100 per cent green energy tariff to more than 2,000 customers, was founded in 2017 and is Germany’s first “fully digital” energy provider.
Ovo, which has been developing “intelligent energy platform” VCharge, says the expansion onto the European mainland comes at a “crucial point” as it makes the transition into an international digitally integrated energy technology company.
It added the investment forms part of its strategy of growth and diversification into international markets. Recognising that the transformative changes in energy are not limited to the UK, Ovo says the investment will enable it to bring its technology platforms and products to a new market.
Stephen Fitzpatrick, chief executive and founder of Ovo, said: “Innovation and advancements in new technology are going to completely revolutionise international energy markets. Far from retreating from Europe, we’re excited to take our transformative technology, digital expertise and great customer propositions and expand into new markets.
“The energy transition isn’t isolated to the UK. It’s global. The opportunity for the intelligent technology and IP we are developing here in the UK to be exported internationally is huge. We’re going to help solve some of the great challenges like how to bring more renewables onto the grid and connect millions of electric vehicles, on an international scale.
“4hundred’s digital offering, technological expertise and rigorous approach to great customer service made them an attractive business for Ovo to invest in. With customers across the world demanding clean, affordable energy, we’re confident that with 4hundred, we’ll have strong growth and continued success.”
Ilona Ludewig, founder of 4hundred said: “It’s a huge vote of confidence that Ovo has chosen to partner with us for their first international venture.
“Through working with the team at Ovo, we will be armed with the expertise to significantly grow our customer base and will be uniquely placed to offer customers additional intelligent energy services.”
Ovo, the largest independent supplier in the UK, recently announced it was raising its variable tariff from next month.
The mid-tier supplier said it is increasing its variable plan rates and removing the online discount associated with it, following a rise of 15 per cent in wholesale costs since June.
Ovo has not disclosed the financial terms of the transaction. But it did say it will invest 55 per cent in 4hundred by December. It aims to eventually acquire 100 per cent of the company.