Hi guys, I love your ethos and model and think you are doing a great job. One thing I’d like to know is why your standing charge is so much higher than your competitors and if you see this coming down in future as you scale up?
Thanks for the vote of confidence!
The standing charge is relatively high because this reflects the costs that we take for managing accounts and the supply to each address. To offset this a bit, we have a dual fuel discount on the standing charge if you have both electricity and gas with us, plus our unit rates are low. At the end of the day, your quote will take into account all the factors you need to think about when deciding on your energy provider.
Economy of scale means that we could see these costs go down, so it’s entirely possible. It’s a bit early for us to commit to anything though. We are committed to passing savings on to our members, which is why we lowered our unit rates twice at the end of 2015 when we saw wholesale prices of energy go down.
Hope this helps,