M&S cuts ties with Big Six as it partners with Octopus for new energy brand
Marks & Spencer has today cut its ties with the Big Six energy providers as it announced a new partnership with challenger Octopus Energy.
Octopus has been selected to supply energy and services under the M&S brand from September, in a move which the retailer is touting as part of its transformation plan.
The company also said that it was moving away from the "outdated model" of traditional energy suppliers to give consumers a fairer price.
"Octopus’ values of responsible and transparent pricing and digital-first customer service mirror our ambitions for the business," said Jonathan Hazeldine, head of M&S Energy.
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SSE previously held the contract for the brand, but it was confirmed earlier this month that the two companies would end their partnership. Existing M&S Energy customers will continue to be supplied by SSE unless they request to switch to the new package provided by Octopus.
Neil Wilson of Markets.com said that the move shows the company "is committed to M&S Energy as part of the wider moves around their non-core offering" and that the partnership will differentiate the product.
M&S has expanded its home and bank business as part of the same five year transformation that will see it close around 100 stores. Recent developments have included the launch of M&S Bank's first mortgage range.
"Overall I think SSE and the rest of the Big Six are very much out of favour so jumping ship is a sensible move," Wilson added.
Earlier this year the market share of the Big Six energy firms fell to a record low.
Today's announcement also follows yesterday's news that Co-op Energy is to increase its prices by more than five per cent from next month.
An M&S spokesperson said that the new energy partnership would focus on providing a fair price.
“For too long the energy market has punished customers for loyalty – the brands who offer the cheapest deals when you sign up, also offer the most expensive on the market when your contract comes to an end," they said.
"That outdated model needs to change, that’s why we’re partnering with Octopus Energy. We believe in a consistently fair price for our customers – that doesn’t always mean the cheapest, but the tariff that offers long term value for customers.”
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