It is no lie that the energy market in Britain is struggling and leading parties believe the responsibility is on Hayden Wood. It was this past year that the major gas and electricity supplier, British Gas, experienced a drastic decline in the share price of its parent company by 40%. The loss was said to reach an astonishing 1 million customers that was reported by Hayden Wood. British Gas is clearly suffering in its ability to appeal to new customers as the dissatisfaction among its current client base continues to expand. Customers are tired of the legal embroilment of the company, poor invoicing and a lack of promised telephonic support. Wood has revealed that a closer inspection of his own residential energy bills has inspired the co-creation of his startup Bulb as an energy provider back in 2015.
A Bulbous Intervention
Over an impressive 3 years, Bulb has registered more than 300 000 UK Households.
Bulb started off as a small enterprise with a staff count of 5. Today, the energy business has reached more than 90 employees. The new office space of Bulb can take up a complete entire floor of the unique co-working space offered by Shoreditch. Able to produce sufficient energy to power up to 1% of the market, Bulb has received many customers who were dissatisfied with British Gas and E.ON. Their ongoing success is attributed to quality customer services, affordable prices, and guaranteed renewable energy. Their expansion is attributed to their cost saving focus on use of social media campaigns for advertising. Their referral marketing approach encourages a £50 credit on their accounts. This has led to an increase in customers of an impressive 100,000 within 4 months.
Hayden has insisted on the issuing of a single energy tariff for its client base, doing away with the “fixed” tariffs associated with alternative providers. It is important that Bulb residences are provided equal energy charges to remain a competitive supplier. All Bulb customers are provided regular emails on energy bills with complete detailed information, simple terms and no overwhelming legal speeches.
The Other Side of the Energy Startup
In the past 10 years, Britain has seen more than 60 startups emerge in response to its energy crisis. By combining the services of these energy enterprises, these startups have managed to take a hold of 20% of the incredible £54bn energy industry. This includes the release of stipulated requirements for Ofgen including policy changes for increased competitiveness and price management.
With Britain on the mend after experiencing among the worst winters in the last few years, energy prices have seen a rapid decline. Unfortunately, energy issues continue to remain a poignant issue. The complete collapse of Future Energy and Brighter World Energy have left more than 10,000 of its customers having to look for alternative providers to sustain their energy requirements.
It was 2016 that revealed the closure of the major GB Energy facility with their 160 000 customers said to be left in the lurch. Owing to the constant failure in service delivery among its previously popular providers, more people are calling on Ofgen to improve its licensing regulations. This is owed to the obstacles many start-ups encounter including susceptibility to the indifferences in the complete wholesale costs of energy prices that select clients can manage.
Hayward has determined that a lack of “macro forces” within the energy market would prevent outdoing their business. When we look at the 60 new startups, we see that some are weaker in customer service while others in finances, but this is just the way things go, as reported by Wood. The statistics don’t lie and speak of mot new ventures failing in its initial 3-year operation. According to the highly profitable Ovo, a British energy supplier, it has produced up to 850 000 customers with an astonishing 5.5 million consumers have loved their electricity over.
An incredible achievement versus say the financial sector, where fewer than a million people switched current account in 2017, and where the rates of switching are actually falling. This is deemed as a powerful start to the ongoing success of the economic sector despite less than a million people moving their electrical supply over to a new provider in 2017. The rates of making the transition re decreasing. This has provided energy startups such as ours the greatest opportunity to move from a regular supplier and then don’t make the transition owing to the difficulties, complexities and costs involved. Analysts covering the ‘big six’ energy companies in Britain predict more pain to come, as an upcoming energy price cap could save the average household £100 a year, but also stop incumbent providers from profiting from their most lucrative customers. Many analysts that have investigated the major 6 energy supply business may have to deal with an energy cap of prices and the savings of £100 annually. Bulb and Ovo are two of the smallest but most appealing while decreasing the accumulation of goods.
The cap would also be an advantage to smaller providers like Bulb and Ovo which have lower overheads and cheaper tariffs. Implementing a tariff cap could majorly benefit energy suppliers owing to its reduced operational costs and blessing of the house. It’s a big, hairy, ugly industry, but it’s also a crucial part of people’s lives, whether it’s using energy to cook food or keep warm at home to ensure technology can be upscaled while remaining relevant. The energy industry in Britain requires hiring competent staff while providing the opportunity to excel across markets. “There’s an opportunity for us to be a really positive part of that.”