by Michael Smith (Veshengro)
British Gas has acquired the remaining 81% of Econergy Ltd (‘Econergy’) for £6.5 million in cash, adding to its existing 19% holding, thus now making Econergy part of British Gas, that is to say Centrica plc.
Econergy is a market leader in biomass heating, which uses renewable energy sources for combustion to produce heat. Econergy offers a complete design, installation and energy services package to domestic properties, businesses and public sector customers. The acquisition supports British Gas’s strategy of helping customers to reduce their carbon emissions through a portfolio of renewable technologies.
The Government's confirmation of the levels of support for the Renewable Heat Incentive, announced last month, underpins the growth opportunities for biomass heating, which Econergy, as market leader, is well positioned to lead in.
In April 2009 Centrica plc acquired an initial 19% stake in Econergy and now, in December 2011, it has, through its wholly-owned subsidiary GB Gas Holdings Ltd, aqcuired the remaining 81% stake in Econergy Ltd.
While this is, probably, a great deal for the original owners of Econergy the question always has to be, and must be in this case, will it benefit the consumer, the customers of Econergy.
The management of Econergy stated that the sector knowledge of Econergy with the market reach and financial strength of British Gas will enable the combined company to take full advantage of the Renewable Heat Incentive (RHI) and continue to lead the growth of the biomass heating sector over the long term.
We will continue to trade as Econergy Limited and your contact points within Econergy will remain unchanged. The existing management team will continue to run the business in a similar manner to the way it has been run to date.
The proof of the pudding is in the eating, as they say and I guess we will have to wait and see as to whether the promises made will materialize or if British Gas will work in its usual way.
© 2011
