MSE News - At Cost Energy: are its promises for real?

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The energy company, in an interview with MSE, answers concerns that it may never get off the ground ..."

Read the full story:
At Cost Energy

talulahbeige_2

This is never going to happen as it would be too complicated to bill or confirm the price that the consumer pays as it fluctuates quickly. This suggests to me that it is a bit of a scam!

When a utility buys its supply it buys based on its forecast customer base months in advance and there are some very complicated demand planning tools used. Utilities invest millions in these as if they get it wrong it can cost them dearly.

If they get it wrong and need to buy more supply at the last minute it's a lot more expensive. A bit like realising at 11am that you havent got any milk so your stuck with the local spar (or like) and you pay more rather than going to Aldi.

The only way they can make sure they cover the purchase costs is to charge the most expenisive price that the gas / electric has hit and consequently a nice little profit!

Premier_2

Only 18,000 potential customers on their database?

That's a lot less than I had thought they would have.

Converting those who have registered simply to gain details of prices to actual paying customers isn't going to be that easy unless they are the cheapest ... and even then 100% conversion is unlikely despite the company's hopes to the contrary.

Remember, they are not offering dual fuel at launch, only gas. (That's how Ebico started 10 years ago).

The fact the company is struggling simply because of the absence of one person is a frightening thought.
I know some companies survive on the basis of exposure a certain individual provides (e.g. Virgin/Richard Branson) but I'm sure they would continue without the top guy in office.
I wish Matt Stockdale the original founder well in his recovery, but don't fully follow why he has pulled the plug on his financial support of this enterprise he was so keen to get off the ground to help others.

Remember it was only 8 weeks ago he personally was still asking on his website for people to sign up, in a congratulatory blog about him securing the energy supply licence.
I don't know what's happened to to have fallen seriously ill and withdrawn the entire financial support in just 8 weeks doesn't quite ring true ... at least not the whole truth to me somehow.

Edit:

"It seems a company that promised to make great waves in the sea of energy providers may struggle to fart in a bath."

Just about sums it up perfectly :T

KimYeovil

Completely mad!

They are not going to charge customers the running cost of the business?!? - instead, those visitors who use their switching site but do not want to become customers are somehow going to kindly forgo any cashback for themselves and give it to At Cost Energy?

I doubt they'd be able to fund the server costs of the web site never mind their energy company's costs with that model.

Do they think that their customers will be magically pleasant and docile and pay their bills without coercion and never complain or query or want to cost them money? You never see Ebico's customers complaining when hiccoughs occur. You never see EDF customers reacting badly when they withdraw a close to flat rate bargain tariff.

Cardew

Well not many on MSE were fooled! A pity there were 18000 trusting souls to sent them their details!

We should run a competition to see what the inevitable marketing email to the 18,000 will say!

Reaper

So running a price comparison web site will make them lots of money and being a gas supplier will not make them anything. Can somebody remind me why they are bothering with the gas bit?

thepearce

Fuel card 2 then?

Premier_2

Reaper wrote: »

So running a price comparison web site will make them lots of money and being a gas supplier will not make them anything. Can somebody remind me why they are bothering with the gas bit?

They claim they are not in it for the money.

They hope running a comparison site will generate enough income to cover the expenditure not only of running such a site but also the costs involved in running an energy supply company (other than the cost of buying the actual energy itself)

Well either they have got their sums completely wrong or the likes of Scott Byrom and his counterparts who run other comparison sites must be rolling in it

Plushchris

LOL what a waste of space!

They arent even running their own comparison service! they are using UKpower so why wouldnt you just go to UKpower directly? (or any of the other more established comparison services)

Just as I thought, data harvesting at its most devious, I hope all those 18000 people enjoy being pestered for price comparisons in the coming months....:rotfl:

Plushchris

Also just re-read it..

"Every three months we will review customers' tariffs and we will email them to recommend a new supplier if we can find a £40 or £50 saving"

Just proves how completely out of touch they are with what is actually going on in the market, the suppliers have made it very hard to switch that often now, look through the top ten in your next comparison, I bet more than half the tariffs will tie you in for a year or more (or have exit fees of £40 to £50)

MORPH3US

This has got "dodgy" written all over it... its basically just a very clever marketing con to get a load of potential customers onto their database to make money for their "price comparison" site...

Very clever but I think people will see right through it.