Flogas has agreed to acquire the Irish customers of Canadian-based Just Energy for up to €700,000.
The deal will see about 10,000 customers transfer to Flogas by the end of this year, subject to approval from the sector’s regulator, the Commission for Regulation of Utilities.
In a statement, Flogas said there will be “no impact on supply” for Just Energy’s business and residential customers during the period and that the annual estimated bill for customers “should not increase”. Once approval from the regulator is received, it added, customers will receive communication from Flogas about their accounts.
The deal comes as Just Energy moves to offload its non-core assets, instead focusing on its “higher margin North American operations”. The company is also selling off its UK operations.
Flogas, a subsidiary of diversified energy and services group DCC, said it will now invest heavily in new IT infrastructure to support the new customers in addition to hiring new staff to boost its resources in sales, marketing, energy trading and risk management.
Smooth transfer
"We're working closely together to ensure a smooth transfer of operations and our priority is to ensure that our new customers continue to receive a great standard of service," said Flogas managing director John Rooney.
Flogas has been operating in the retail energy market since 1978 and supplies natural gas and electricity to more than 35,000 residential and commercial customers in the Republic. It flagged that some customer tariffs may change on transfer to Flogas
The deal is expected to close by the end of 2019.
