The agreement creates price certainty for the independent supplier, which would otherwise be subject to the volatility of wholesale markets. Speaking to Utility Week in 2014, Spark chief executive Chris Gauld explained the benefits of such a deal: ““They take a lot of the risk because they can spread it over a much bigger portfolio, and they give us credit terms, so our cashflow has improved. It’s been a big relief, because it means we can invest in service and the company, without having to always worry about prices.”
Commenting on the new deal with Macquarie today, Gauld said: “Our new agreement with Macquarie continues our work in establishing a first class energy supply company that offers to benefit tenants right across Great Britain.
“The new arrangement improves on our previous agreement with Morgan Stanley, and will ensure our customers and partners will continue to enjoy low, stable prices and constantly evolving customer service offers that save tenants, landlords and agents time and money.”
Head of Macquarie Energy Markets Division EMEA, Erik Petersson, said: “We are excited to work with Spark Energy and support the company’s continued growth by providing a new wholesale energy trading facility on a collateral-free basis.
“This will enable the company to invest more capital in the business for the benefit of its customers.”