Independent electricity provider PrePay Power is planning to raise an additional €4 million via a loan note to support its expansion in the domestic market here.
This will bring the total investment in the company to €20 million over a two-year period. The three-year loan note is expected to be issued in the next six months and will pay 12 per cent a year.
PrePay Power was founded in 2009 and had signed up more than 55,000 retail customers by the end of August, according to figures provided to the Commission on Energy Regulation. This equates to a near 2.7 per cent share of the domestic market, which is dominated by ESB, Bord Gáis and Airtricity.
Irish-owned company
The Irish-owned company is adding more than 5,000 customers a month and is the biggest prepay provider in the market. Its rivals include Pinergy, which is using Ireland and Munster rugby star Paul O’Connell to promote its services in a high-profile advertising campaign.
PrePay Power, which began recruiting customers in 2011, sells electricity to domestic premises via specially installed meters. The meters are supplied free of charge.
Customers can then top up their electricity by entering a code purchased online or from a network of retailers. This means they avoid receiving regular electricity bills.
It also benefits landlords who avoid unpaid bills being left behind by tenants and disputes over arrears.
It is led by Andrew Collins, a former managing director of online insurance broker 123.ie. Before that, Mr Collins led Needahotel. com.
Commenting on the fundraising, Mr Collins said: "The funds we are raising now will support our strong rate of customer recruitment. There is a significant upfront investment involved in winning new business and we now have a large team of people across the country installing thousands of meters each month.
Restructuring
“Our current projections suggest we will be looking at over 65,000 customers by the end of this year and that’s a great platform from which to grow further over the next five years.”
Latest accounts for PrePay Power Ltd show it made a loss of €479,761 in 2011 from revenues of €710,133. That was the company’s first year of meaningful trading and was also the period when it completed a major restructuring.
Its main shareholder is corporate financier Ulric Kenny.
