Black Country jobs at risk as Co-op Energy buyout agreed

Co-op Energy, part of the Midcounties Co-operative, has agreed a deal to be bought out by Octopus Energy.

The merger would see a huge shake-up of the Midcounties Co-operative-owned firm – which employs hundreds of people in the West Midlands and 500 across the UK.

Octopus Energy is taking on the responsibility for the management and energy supply to more than 300,000 customers – but it will stay under the Co-op Energy brand.

Co-op bosses held a meeting yesterday afternoon at their head office in Hatherton Road, Walsall, to break the news to workers.

One employee, who asked not to be named, said losses could affect up to 350 people, including 150 based in Walsall.

He said: “There are lots of disgruntled people.”

A spokesman for Co-op Energy confirmed the move would lead to job losses but could not say how many people would be affected.

Acquisition

Octopus has been growing steadily since its launch in 2016 and, alongside the likes of OVO and Bulb, is considered a major challenger to the Big Six.

In the past year it picked up 22,000 customers from the acquisition of Affect Energy and 100,000 customers from Iresa after the supplier collapsed in August 2018.

It has also made purchases of its own in recent years, acquiring Flow Energy in April 2018.

Midcounties Co-operative chief executive officer, Phil Ponsonby, said: “The Midcounties Board is extremely proud of what has been achieved by our energy business since we entered a market dominated by just a few energy companies back in 2011.

“At that time 99 per cent of supply came from the Big Six and there were fewer than 12 companies in the market.

“Today there are over 70 and we firmly believe that we disrupted the market and played our part in reducing the dominance of the big players by providing fair prices, supplying 100 per cent green electricity and supporting community energy projects all across the UK.”

Greg Jackson, CEO of Octopus Energy, added: “This acquisition and our ongoing partnership with Midcounties is another step on the road to improving the domestic energy market for good.

“Our renewable energy supply and outstanding technology is now delivering award winning service to over a million homes in the UK with 100 per cent green electricity as standard.”