In exchange for its investment British Gas will gain a 15.96 per cent stake in AlertMe and a seat on the company’s board.

AlertMe produces online energy management products and software to enable customers to monitor and reduce their household utility bills. The company’s web-based platform allows users to control home energy use remotely via the internet or smartphone.

Phil Bentley, managing director at British Gas, comments: ‘AlertMe’s innovative product portfolio is a great addition to British Gas’ current service offering, and will provide our customers with a range of new, easy to use tools to reduce their energy consumption and cut their fuel bills.’

The funding was sought to allow AlertMe to expand its partner and channel programme in the UK, Europe and the USA, and to extend its platform and services.

Current investors Good Energies, Index Ventures, SET Venture Partners and VantagePoint Venture Partners all joined in the second round investment.

As part of the deal British Gas has signed a commercial agreement worth over £20 million to provide AlertMe products and services to its UK customers.

Saul Klein, partner at Index Ventures, says: ‘We see an enormous global opportunity for the value proposition that AlertMe offers consumers. As more people look to manage their homes in a smart way, the AlertMe platform is well positioned to support this transition in easy to use, personalised and affordable ways.’