Press reports suggest UK Power Reserve (UKPR) is in advanced discussions about a takeover with two buyout firms.
The rumour comes as fresh warnings regarding the country’s ability to cope with a surge in demand this winter are made.
National Grid, UKPR’s biggest customer, recently told ELN the UK’s safety cushion of spare generating capacity would be as low as 1.2% this winter – the period of greatest demand.
UKPR provides balancing services to National Grid in order to help ensure security of supply.
Firms Equistone and Inflexion Private Equity are claimed to be interested in buying the company out, the cost of the deal is unknown.
Talk of balancing the UK’s energy mix have increased, as government recently slashed subsidies for renewable energy and signed a deal for China to invest £6bn in a new nuclear power station at Hinkley Point in Somerset last week.
UKPR has declined to comment.