An Ovo spokesperson told Sky News on Friday that the company was in “advanced discussions” with Mayfair Equity Partners on a deal which could be signed as early as Friday, and will be the first institutional money taken by Ovo since it launched in 2009.
It is understood to be designed to provide Ovo with funds to accelerate its growth at a time when the energy market is under intense political and regulatory scrutiny.
The Competition and Markets Authority (CMA) will soon publish its provisional findings after a year-long probe into the sector, which is dominated by the big six energy suppliers.
When Ofgem first referred the energy market to the CMA, energy secretary Ed Davey said it would “supercharge” the growth of independent energy.
In its initial submission to the CMA investigation last year, Ovo argued that the big six use the relatively inactive customer base to their advantage, in some cases by charging higher rates to ‘stickier’ customers in order to cross-subsidise loss-leading tariffs which compete with smaller new market entrants.
The company argued that its rapid growth in recent years came in spite of the structure of the market which has impeded its progress as a new entrant.
Read Utility Week’s analysis on small suppliers here.