I like you. I think you’re a bright new thing on the energy market. I joined as a friend referred so we both benefitted. You were also the cheapest on the comparison sites. We were getting along just fine. Trouble is you’ve increased prices twice in approximately 6 months. That doesnt exactly make me feel loved. I’m already way less likely to make this a long term relationship. So a little relational counselling if you will. Most relationships are built on trust something price hikes erode rather rapidly. So I’d like to make a little proposal. How about price freezes for newbies? We all know you probably bought the energy I’m using right now a long time ago and are simply protecting yourself for the future. I guess I’d appreciate a year to enjoy the present! If this is posted in the wrong place then please help redirect. Best wishes
I’d like to add some perspective here. I joined Bulb just over a year ago, and shortly after I joined they dropped their prices. Twice.
Now they’ve raised their prices twice.
From my perspective, I’m back where I started price wise when I joined them.
In my opinion, British Gas for example would not have dropped prices like Bulb have, they would have just added the price drop to their profit margin. So I think Bulb deserve credit for that.
I’ve always assessed how it’ll affect me when prices go up, whether I’d be better off elsewhere etc, but I always make sure I remember that Bulb dropped prices for us when market conditions allowed. I don’t trust other providers to do the same so I’m staying put.
Thanks for writing such a detailed thoughtful account of your time at Bulb, as you say we are a fresh entrant to the market and feedback from our members, be it positive or negative, is essential to us staying the bright young thing. It obviously hurts to hear that you feel like you have lost trust in us. I think the key thing that we want to get across regarding this price rise is that increasing prices is something we really hate doing. Bulb has grown massively in the last 6 months so for many of our new members this is not a great start to their time at Bulb, the fundamental reason that we have increased prices is due to the wholesale price of energy increasing. The price of wholesale energy costs is now 21% higher than they were in February 2018 (Gas is up 22% and electricity is up 20%). This means that not increasing our tariff would be unsustainable. The price of wholesale energy is not something we can control wholesale energy prices are set by the traded market and change depending on supply and demand in the market. This is the case for buying renewable and non-renewable energy.
I have attached an image of a graph that we put out that details the relationship between the price of our member’s bills and the cost of wholesale energy prices since September 2017. This speaks to what @matthew744 was saying that we are quick to lower prices and slow to increase them, absorbing most of the costs ourselves.
Whilst I think that your idea of a price freeze is really great in theory, I don’t think that it would be fair. If we were to freeze prizes for our newer members it would mean increasing prizes for our older members, as you said yourself a good relationship is built on trust which means treating our long-standing members the same way that we treat our new members. We want to break away from the energy market tradition of treating old customer’s badly in order to lure/keep new members. This doesn’t seem fair and it goes against our pricing policy of one tariff for every customer.
Let me know if there are any other thoughts that you have relating to our policies.