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Centrica to sell Ontario home services business

Staff writer |
Centrica plc's North American subsidiary, Direct Energy, has agreed to sell its Ontario home services business to EnerCare for C$550 million.

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Direct Energy currently has nearly 1.9 million home services contracts in Ontario, to provide a range of plumbing, heating, ventilation, air conditioning and other related services.

The majority of customers are served through a joint arrangement, under which EnerCare owns the water heater assets, while Direct Energy provides services and manages the customer relationships. This transaction will combine the two parts of the business into a single entity, wholly-owned and managed by EnerCare, enhancing the overall customer proposition.

Badar Khan, president and CEO of Direct Energy, said: "This is an attractive opportunity to realise value from the Canadian home services business. With our activities in Ontario no longer forming a material part of the business, we will focus our attention on opportunities in the United States and Alberta, through a range of innovative products, including combined energy and services offerings."

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