Louth energy company Flogas has expanded into the Northern Ireland electricity market by acquiring Budget Energy. Budget Energy, based in Derry, trades as BE Energy in the Republic and has c.90,000 customers.

Deal consideration was not disclosed.

Budget Energy Ltd had turnover of £39m in the year to September 2018. Gross profit was £2.7m and the company booked an operating loss of £1.6m after accounting for wages and salaries of £2.8m. Directors emoluments in 2017/18 amounted to  £970,000. Total liabilities were £8.4m and year-end net assets were £4.8m

Flogas managing director John Rooney said: “The Budget Energy acquisition is a significant step forward in the growth of Flogas and accelerates our vision to be one of Ireland’s leading all-island energy suppliers.” Last November Flogas acquired Just Energy Ireland.

Budget Energy has been expanding its renewables capacity in recent years, with investments in solar, wind and anaerobic digestion sources. This was an attractive factor for Flogas and will be a key contributor to its sustainability strategy in the years ahead, the company says.

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Budget Energy owner and chief executive George McEvoy (71), pictured, added: “While sad to be leaving Budget Energy I am delighted that Flogas, an established Irish energy company with deep roots in Ireland and the community, has bought the business."

Flogas will retain the Budget Energy brand in Northern Ireland and there will be no immediate changes for customers in either jurisdiction. Flogas says it plans to expand the business and will be recruiting for sales, marketing and customer service roles.

Flogas, a subsidiary of DCC plc,  sells gas, electricity and LPG to residential and commercial customers in the Republic. In Northern Ireland it offers LPG for residential and commercial customers, commercial natural gas, and with the purchase of Budget Energy it will now offer electricity to residential and commercial customers.