Bulb’s owner is Simple Energy Limited. Checking their companie’s accounts on companies house website, there are couple of interesting things you can take away
First, you can see that Bulb concentrated on Customer Aquisition and Marketing - they’ve spent a staggering 62 million pounds on that alone.
According to director’s statement, that’s part of the plan to grow the company, and that the current year loss of 63 million is expected. Last year’s losses were 129 million
Now, the 2nd part gets interesting (page 19 on the statement). I will quote it in here, with bold section highligthed by me:
The Directors considered it appropriate to assess the future cash flows in two circumstances - skipping some text gere here
The different scenarios focused on changes to customer payment rates and available cost savings.
Now, how I undestand that is, Bulb’s plan was to introduce low rates, and spend A LOT of money on marketing, with expectation that they will lose money, and then, once customer base is large enough, just keep raising the rates until they’re profitable. Assumption here being that a lot of people probably will not be bothered to change their supplier