Brilliant/Northumbria energy merger?

devilish6

:T Thanks gsmlnx - not allowed to post the Times link myself as I'm a newbie to the forum!

molerat

Does make you wonder about OFGEM's due diligence when awarding licences.

wavelets

gsmlnx wrote: »

The article can be found at https://www.thetimes.co.uk/article/boss-of-1-7m-energy-flop-future-launches-new-firm-from-his-family-home-s6m053gzz

Company House records indicate that this person resigned as a director of Northumbria Energy Ltd on 20 January 2019, having been appointed 03 December 2013 i.e. the day the company was incorporated.

On 03 December 2018, this person held 37.25% of the company shares.
(Updates to shareholdings are normally only updated annually on Company House records)

Edit: He was, however, appointed a Director of Euston Energy Ltd on 05 October 2018
(Not sure what happened on 10 December 2018, as he seems to have resigned and then was reapponted on the same day - presumably a filing error?)

Euston Energy Ltd was awarded its Supply Licences 31st October 2016
https://www.ofgem.gov.uk/publications-and-updates/euston-energy-limited-notice-grant-electricity-supply-licence
https://www.ofgem.gov.uk/publications-and-updates/euston-energy-limited-notice-grant-gas-supply-licence

Euston Energy Ltd is registered to a different Newcastle address

Northumbria Energy Ltd does not hold any energy supply licences.

Vendee

Well, like wavelets, I emailed Brilliant and got the same automated reply which stated "If you are on a fixed tariff with Brilliant Energy and wish to stay, we will not switch your supply until you are up for renewal."

I then got a personal reply (on Saturday) from {Edited by Forum Team} presumably {Edited by Forum Team} the company secretary who confirmed that they will honour my current tariff for the entire 12 month fixed term if I didn't want to switch to Northumbria... which is good news for me.

wavelets

Vendee wrote: »

Well, like wavelets, I emailed Brilliant and got the same automated reply which stated "If you are on a fixed tariff with Brilliant Energy and wish to stay, we will not switch your supply until you are up for renewal."

I then got a personal reply (on Saturday) from Oliver, presumably xxxxxxxxx the company secretary who confirmed that they will honour my current tariff for the entire 12 month fixed term if I didn't want to switch to Northumbria... which is good news for me.

I got a reply too! :T
Yes it's him, for sure.
(Several reasons that I won't go into here, but the content isn't from your bog standard customer service adviser)

I asked a few questions, and got a chapter & verse response, but I'll summarise here:

Cheaper tariff?
I asked if they could advise how much I would save.
The response was I have to go and find out myself.
But he said if it doesn't save me money now, it will in the future as soon as the fixed tariff expires. [Like I suggested, they are going to price us away from Brilliant Energy]

He says:

We are convinced latest than the Northumbria Energy Smart 2.3 tariff will be a cheaper option for you.

... if not today whilst you are on a low cost Brilliant Energy tariff, in the future when that expires.

[Well I can only go on todays prices, as I have no idea what they will be in the future, but as I mentioned earlier in this thread, cheaper options do exist. Use a comparison site to find the best deal for you - but you won't find Northumbria Energy on any at the moment, so you'll need to compare to that manually.]

He claims he already has had "lots" of Brilliant Energy customers who have already made the request to switch immediately to Northumbria Energy
[If there are any MSEers who fall into that category, please do consult a comparison site. Remember, you have a 14 day cooling off period in which to cancel - I don't know if they told you that, but its Ofgem rules when switching licenced supplier]

Automatic switching?
They have now realised they cannot switch you without your express consent. [I think that is what he meant because his reply seemed a bit contradictory in places]
But he did conform that Brilliant Energy will honour any fixed tariff (until you switch)
He said, if you don't start a switch before at least 21 days before the end of the fixed tariff expires, you will have some days charged at the expensive SVT that Brilliant Energy charge, (or the equally expensive fixed rate tariff they offer, if you request a transfer to that)

[I'll cross that bridge if/when I get to it - that is not what the SLC say - it says as long as the old supplier is advised before the end of a fixed term, then the fixed tariff must carry on until the switch occurs, subject to a time limit which I think is 20 days extra]

Early Exit Fees?
These have been abolished for all Brilliant Energy tariffs with immediate effect.

Euston Energy Ltd t/a Northumbria Energy tariff options
The only tariff currently on offer is a variable rate tariff which has no exit fees.
Although apparently there is a 4 week notice period required to leave
[I've not looked into the notice period to leave - sounds dodgy to me. I thought Ofgem expect switches to occur within 21 days, and they are trying to reduce that further, and it's for the new supplier to inform the old supplier that you want to leave the old supplier]

Smart meters?
Yes you will have to have a smart meter installed if you switch to Northumbria Energy.
He said

The Goverment forces the suppliers to install at every customer premises latest till 2020 a smart meter.

[No they don't. Suppliers have to offer a smart meter to everyone by that date, but ultimately it is for the customer to decide whether or not they wish to have one installed]


Is Euston Energy Ltd a white label of Brilliant Energy?
He says yes, but not in accordance with the terminology you, I, nor even Ofgem currently understand

Ofgem define a white label supplier as follows:

In the retail energy market, a 'white label' is an organisation that does not hold a supply licence, but instead works in partnership with a licensed 'partner supplier' to offer tariffs under the white label brand.

Source: https://www.ofgem.gov.uk/publications-and-updates/white-label-providers-consultation

He wants to take this definition "to a new level"

[i.e. he is using his own definition.]

He admits that there are 2 energy suppliers, Brilliant Energy Supply Ltd & Euston Energy Ltd.
They are each a separate company/legal entity and they each have their own supply licences. Confusingly, he says that is how a white label supplier should be in the future [? - Ebico, Sainsburys, etc take note! ]

His argument seems to be that Euston Energy Ltd is a white label of Brilliant Energy Supply Ltd, as it will use the same software that was designed for Brilliant Energy (to save on start-up costs)
[At least that is his definition of a white label supplier, or what he wants it to be in the future when he takes the definition "to another level" ... and so he using it today :cool:]

This is the explanation Euston Energy Ltd now includes within its terms and conditions:

Euston Energy Ltd trading as Northumbria Energy is working in partnership with Brilliant Energy Supply Ltd. Euston Energy Limited and Brilliant Energy Supply Limited are both licensed by Ofgem to sell energy to you using their brand where Euston Energy is using the Brilliant Energy Supply Ltd fully compliant IT and industry market communication infrastructure

[So that means Euston Energy Ltd/Northumbria Energy are NOT a white label supplier - they are a stand alone, separate licenced supplier ... who is going to use the same software, and possibly some other business infrastructure, that Brilliant Energy use.]


Do Ofgem know about this?
He says yes
[and I do believe him as he comes across generally as honest & truthful to me in his reply, even if some parts I think are misguided. Whether Ofgem fully are on board with all his plans, I'm not quite so sure. I'm not sure they even understand at present, as he does seem a master of 'spin']

He says:

this is actually an exercise which is part of a much larger attempt to do something sensefull for the country, for its citizens and for the energy industry while initaiting innovation.

[He's German speaking, so allowance given for spelling, grammar, etc. Is it me, or does this sound like someone who may also be annoyed by Brexit?]


So it looks like I'll be staying with Brilliant Energy until the term end (assuming they don't cease trading beforehand - there's nothing in his response to suggest there are any barriers to them shutting up shop as soon as they have moved all their profitable customers to Northumbria Energy)

Then I will consult a comparison site to find the best deal for me. It won't be Brilliant Energy, as his reply has already made it clear they will not be cheap.
And unless Northumbria Energy launch a fixed tariff that is considerably cheaper than the rest of the market, it won't be them either. (I don't think there is much chance of that happening either).

wavelets

For future reference, I've checked out when a supplier should continue to charge a tariff that would otherwise have expired, and it's even more generous than I previously believed,

Continuation of Fixed Term Supply Contract terms for interim period

24.9 In relation to each Fixed Term Supply Contract, unless the Domestic Customer has entered into a new Fixed Term Supply Contract with the licensee or paragraph 22C.5 of standard condition 22C applies, the licensee must ensure that where paragraph 24.10 applies a Domestic Customer will continue to be subject to the same Charges for the Supply of Gas and the same terms and conditions (but not any Termination Fee) that applied to that Fixed Term Supply Contract until they have changed their supplier.

24.10 This paragraph applies where one of the following conditions are satisfied:
(a) no later than 20 Working Days after (but not including) the date on which the
fixed term period of a Fixed Term Supply Contract ends, the licensee receives
Notice under the Network Code by way of the Relevant Gas Shipper that another
Gas Supplier will begin to supply the Domestic Customer’s Domestic Premises
within a reasonable period of time; and

(b) another Gas Supplier begins to supply the Domestic Customer’s Domestic
Premises within a reasonable period of time after the date on which the Notice
referred to in sub-paragraph 24.10(a) is given; or

(c) where:
(i) the conditions in sub-paragraphs 24.10(a) and (b) are met; and
(ii) the Domestic Customer has paid any Outstanding Charges within 30 Working Days after the Domestic Customer receives Notice that the licensee intends to prevent the Domestic Customer’s Proposed Supplier Transfer.

So that is 20 working days (4 weeks usually) for a new supplier to inform the existing supplier, and then they still have a 'reasonable' timeframe to complete the switch.

As Ofgem expect switches to complete within 21 days of application (3 weeks) , thats a total of possibly 7 extra weeks after the due end date to continue on the low price tariff

suffolkandy

Well I am on their fixed rate 2 yr deal not due to end until March 2020.
I was a bit confused, and emailed them also. I received the auto response as others did. But then received the one below.
I gave them the tariff I am on and still they insist the new one is better. It is not...

Dear XXXXXX,

We don‘t want you to feel uncomfortable. Please appologise any inconvenience.

For compairson please feel free to go to the enrolment page of Northumbria
Energy (.northumbriaenergy.co.uk) and start the journey to switch request-
please choose not the tariff you are on but the Brilliant Energy Supply Standard variable tariff
( behaving you would be on)- that way you will see exactly what difference
it would make you in savings to switch to NE 2.3 SMART latest when
your existing tariff will come to an end.

You can initiate the immediate switch through this
enrolment form too as this is the fastest way to activate the switch yourself if you want to.
(Northumbria Energy is Brilliants Energy first white label partner project)

It goes without saying that Brilliant will honour your
fixed contract till it comes to its natural ending.
For sure we will not switch you against your will beforehand!

The Northumbria Energy tariff on offer is a variable tariff, thus you are
not locked into any long term agreement automatically.
( it has a 4 weeks notice period only)

Please keep in mind that you will receive 49 days before your fix tariff
contract ending a retention letter which will give you some more
knowledge about your 2nd year follow up tariff.

You can switch to any other party without an early terminationn fee from now on.

Unfortunately we will not be able to offer again the same tariff as cheap as
the present tariff you are on in the following year after your contract comes to ist end.
Keep in mind that you will be able to switch free of charge to any other supplier from that moment on.

We are convinced latest than the Northumbria Energy Smart 2.3 tariff will
be a cheaper option for you.

Please make sure that you initiate a switch the latest 21 days before your tariff comes to an end
to either Northumbria Energy or to any other supplier to prevent you slipping onto the
expensive standard variable tariff of Brilliant.

Once your final bill is produced and in case you are in credit we will refund you your
credit directly if not stated otherwise by you.

Assuming we were able to give you all the answers needed and the assurance
requested needed we have closed the ticket


Yours sincerely
Brilliant Energy Customer Service Team

wavelets

^^^^
Looks very similar to one I received over the weekend from the company secretary
... but I also received another quite detailed one too , the combination of which I summarised above

It includes reference to the 4 week notice they say Northumbria Energy will want before allowing you to leave them (I've not looked into that yet, but think it will not be enforcible for domestic customers) and the warning to start your switch from Brilliant Energy at least 21 days before the expiry of your fixed deal (I have addressed that above - there's no need as per SLC 24.9 & SLC 24.10)

Interesting how they urge you to compare versus their expensive variable tariff available today, rather than the fixed tariff you are on that will not expire for over 12 months. :cool:

suffolkandy

Thanks

I intend to sit tight and do nothing and look to switch as normal prior to the contract end March 2020.

However I was a little confused by this part

Please keep in mind that you will receive 49 days before your fix tariff
contract ending a retention letter which will give you some more
knowledge about your 2nd year follow up tariff.

wavelets

suffolkandy wrote: »

Thanks

I intend to sit tight and do nothing and look to switch as normal prior to the contract end March 2020.

However I was a little confused by this part

Please keep in mind that you will receive 49 days before your fix tariff
contract ending a retention letter which will give you some more
knowledge about your 2nd year follow up tariff.

I think that is just confirmation that they will contact you 49 days before the end of your fixed tariff i.e. the opening of the usual switching window, to advise you (a) your deal is coming to an end and (b) what they can offer you as a follow on ... all as Ofgem mandates.

Yes, it's a bit confusing as it suggests it will be another 2 year deal option, but I doubt it; their current offerings are as per their website.
Also, the switching window is a bit academic now they have removed the early exit fees from your current tariff ... but they do need to remind you as/when your existing deal will be coming to an end.

My concern is that Brilliant Energy will be no more by this time next year.
Not many people are on a 2 year fix - it wasn't offered for long and was electric only.
(There was a dual fuel one previously, but that has long expired)

You probably need to take a view on when best to leave this guys.
I would suggest you set your Cheap Energy Club to alert you as soon as you can make any saving at all, and if/when that occurs, take the switch (as there are no eraly exit fees to worry you any more)
- based on 3100kWh, there's nothing cheaper than your fix at present (for the Eastern region), but there are some offerings about £20 more ... but they may be variable and/or not somthing you are happy to jump into anyway.
But prices may fall in the summer, hopefully, which might make something more appealing to you.

I'm thinking it's better to get out when you want to, rather than being forced out, possibly under a SoLR procedure.