Spark moves into broadband market

Energy firm Spark is moving into the tenant broadband market despite being the subject of an ongoing probe by energy regulator Ofgem.

Spark is launching a broadband and calls package exclusively for tenants in a move that it claims will make it a “utilities one-stop-shop in the rental sector”.

Controversially it pays letting agents for every tenant they sign up to its deals. It says that for a letting agent managing 1,000 properties this comes to as much as £24,000 in profit each year.

But agents and landlords should be aware they’re committing their tenants to a company with a generally poor reputation.

Despite pointing out in its press material, that Spark ranks above the “big six” in the 2014 Which? Switch energy satisfaction survey, it fails to mention that it came tenth out of 17 suppliers and scored just one out of five for complaints and two out of five for customer service.

Spark has been on the receiving end of a high number of complaints for a company of its size.

Last year saw Consumer Futures (previously Consumer Focus) refer Spark to the regulator Ofgem after a flood of complaints. It was also the subject of a BBC Watchdog programme which looked at issues of customers not being able to switch away from the energy firm and problems with poor customer service.

Spark, which has partnered up with HomeTelecom, says the new broadband and calls service will enable tenants to have “all essential services bundled up with one single provider” and will mean they will be able to be online within 48 hours of moving in. It claims its prices are cheaper than BT and Virgin Media.
 
Chris Gauld, CEO at Spark, said: “The vast majority of tenants are young people whose expectations of broadband are very high. Our new offering, working directly with letting agents, will get them online within 48 hours of moving in. Letting agents will also benefit from having the tenant’s essential services bundled with one supplier as well as earning valuable additional revenue.

“This is an opportunity for agents to lead the way and generate additional revenues; the major broadband providers can take a couple of weeks to get tenants online which is not good enough. We need to stop ignoring this growing section of the population – the young renter – and start looking at their needs. Renting is no longer a stepping-stone but a long-term affordable option for many.”