IT is hoped that the future of up to 400 local jobs will be saved this week with the takeover of a Selkirk energy firm.

Spark Energy announced on Friday it was unable to continue supplying its 290,000 customers.

The firm, which is based at Ettrick Riverside, ran into trouble last month when it was unable to make an annual payment of £14.4 million for non-renewable-sourced energy.

Bosses are blaming increased wholesale costs and the UK Government's September cap on domestic energy bills on variable tariffs at £1,137.

But an announcement is expected which could secure the vast majority of the jobs with OVO Energy taking over operations.

A spokesman for Spark Energy said they weren't yet in a position to make a statement as we went to press today.

But regulator Ofgem revealed it was in the process of concluding an agreement which would see a new company, believed to be OVO Energy, start supplying Spark's customers.

A spokesperson for Spark told the Border Telegraph: "Spark Energy Ltd, the group’s parent company, has been working on creating an opportunity for our workforce which could see us becoming a part of OVO Energy, one of the UK’s largest independent energy suppliers. A purchase agreement has been agreed, subject to conditions.

“If successful, it could mean Spark becomes a standalone part of this large independent supplier - operating from our offices in Selkirk, Edinburgh and Horsham, supplying our customers under the new parent company’s licence."

OVO Energy also confirmed that a takeover is in the pipeline - and an announcement is due once Ofgem agree terms.

A spokeswoman said: "Ovo Energy can confirm we have entered into a conditional agreement to buy the operating company of Spark Energy, and we also intend to submit a proposal to Ofgem to take over their customers.

"We have been working with the management team in Selkirk to ensure Spark Energy jobs will be protected and customers' services will not be disrupted."

Spark was founded in 2007, and has a turnover of more than £200 million.

It is currently backed by its chief executive, Chris Gauld, and finance chief Hamish Osborn, who led a management buyout of the firm in 2016.

In the same year the company expanded further with the creation of Spark Academy, which was opened by First Minister Nicola Sturgeon.

It is understood that an appeal was made to the Scottish Government for help at the start of the month.

A Government spokesperson said: “The Scottish Government has been in discussions with the company for a number of weeks as they tried to find a solution which would avoid or mitigate against the potential loss of jobs at Spark Energy.

"We welcome any resolution which secures the future employment of the Spark workforce, who make up a large part of the Selkirk and the wider Borders working-age population.”

Scottish Borders Council also has a task force on stand-by in case of any job losses.

Leader Shona Haslam said: “Spark Energy is one of the largest and most important employers in the Scottish Borders, with over 400 staff based at its Selkirk office.

“There is obviously local concern following the news that Spark’s subsidiary company has ceased trading in the energy supply market, albeit we understand no staff are associated with this subsidiary.

“While this is a private business matter, the Council and partners are prepared to offer any appropriate support to the company and its staff which they may require at this difficult time.”