Bulb Energy

[Deleted User]

There is an interesting article in yesterday’s Daily Telegraph (paywalled) about Bulb Energy. If the quote from Ofgem is to be believed, the company has faced a difficult few months.

Mr_K

Full article here:-
"Bulb Energy has been granted a stay of execution by lenders as it grapples with a spike in wholesale prices, spiralling customer complaints and the resignation of its co-founder.

The loss-making electricity and gas provider, which has 1.7m customers and is backed by billionaire Russian-Israeli entrepreneur Yuri Milner, has struck a deal to delay repaying £55m of loans until the end of next year. 

The deal comes just months after co-founder Amit Gudka’s surprise decision to quit in February.

Bulb was forced to hike its prices in April and May as it grapples with soaring costs. Tariffs were also increased twice in 2020. Wholesale energy prices have doubled over the last year and risen a third since March. 

Meanwhile, customer dissatisfaction has risen. It was the most complained about large supplier in the first three months of 2021, attracting 3,265 complaints per 100,000 customers, according to energy watchdog Ofgem. 

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The complaints, more than three times the number received by British Gas, compared with 689 per 100,000 Bulb received during the same period in 2020.

Bulb was forced to pay out £1.8m in refunds and compensation and redress last August after overcharging customers. “We’re sorry. We will do better,” it said at the time. 

Bulb was set up by Mr Gudka, an energy trader, and former Bain & Company management consultant Hayden Wood in 2015 to steal market from the so-called “big six” energy suppliers: British Gas owner Centrica, E.ON, Scottish & Southern, RWE, npower, EDF Energy and ScottishPower.

Mr Milner, the businessman behind Russian internet firm Mail.Ru backed the duo alongside American hedge fund Magnetar Capital.

It has grown from just 30,000 customers in 2017 to 1.7m currently and has expanded into France, Spain and the US. The supplier doubled turnover to £1.5bn in its most recent accounts, for the year to March 2020.

The race to secure market share has come at a cost, however. Bulb racked up losses of more than £220m between 2017 and 2020. 

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Bulb has been able to pay for some of its expansion through upfront payments from customers. It had £107m of deferred income, believed to be charges paid in advance, in its most recent accounts, double that held in the previous year.

Loans totalling £55m were due to be repaid in December 2021. However, Bulb has been granted a one-year extension by its banks. 

A Bulb spokesman said: “We’re proud to be named the fastest growing company in Europe, providing excellent service, fair and transparent prices and green technology to help people save money and reduce carbon emissions.”"

Swipe

I'll say one thing for Bulb, unlike many others, they are very fast at producing a final bill and credit refund when switching away.

niktheguru

They used to be great, sadly with their expansion they have become rather uncompetitive. I'm not sure why people would decide to switch to them today.

folkestonelisa

Swipe said:

I'll say one thing for Bulb, unlike many others, they are very fast at producing a final bill and credit refund when switching away.

Hmm, been waiting 8 weeks now for a final bill and had to set up a direct debit as they hadn’t closed my account and were going to charge me as they wasn’t a direct debit set up. I have estimated my final bill and at the moment they owe me about £150 refund. Not impressed. 

hollyrf85

This company thought it was ok to more than double payments with 2 weeks notice. This is despite me having been in contact with them explaining what I could afford and a top up, if it was needed, in September. I had an agreement this was ok so the massive increase 2 months before the agreed top up was below the belt. They think it is fair to base monthly average on winter months in an all electric house...that does not give a true average.

Appalling customer service for this reason...not able to keep to an agreement is worse than poor service. No response to complaints made either. I'm glad I spotted the email about the massive increase or I would not have been able to provide for my family, shockingly bad service giving 2 weeks notice!

bristolleedsfan

Bulb prices are increasing again from 22nd August ......

Swipe

bristolleedsfan said:

Bulb prices are increasing again from 22nd August ......

They really are taking the pee now. Glad I jumped ship in April to a 2 year fix

brdkjmn

folkestonelisa said:

Swipe said:

I'll say one thing for Bulb, unlike many others, they are very fast at producing a final bill and credit refund when switching away.

Hmm, been waiting 8 weeks now for a final bill and had to set up a direct debit as they hadn’t closed my account and were going to charge me as they wasn’t a direct debit set up. I have estimated my final bill and at the moment they owe me about £150 refund. Not impressed. 

Goo luck with that! I switched from bulb in June with my final bill being £128 in credit according to my online statements.  I've just received a final bill for £847!! I called Friday only to be told they don't know how it happened but the bill is correct. I've always been in credit(I thought) and even had a large refund a year ago. I'll be back on the phone in the morning to log a complaint, hopefully they can sort something or I will refer it to OFGEM !!

MWT

brdkjmn said:

I'll be back on the phone in the morning to log a complaint, hopefully they can sort something or I will refer it to OFGEM !!

Don't leave them to 'sort something', check the meter readings and what you have paid then you will know what the correct answer is and you can tell them what to do with the figures to back you up...

[Deleted User]

brdkjmn said:

Goo luck with that! I switched from bulb in June with my final bill being £128 in credit according to my online statements.  I've just received a final bill for £847!! I called Friday only to be told they don't know how it happened but the bill is correct. I've always been in credit(I thought) and even had a large refund a year ago. I'll be back on the phone in the morning to log a complaint, hopefully they can sort something or I will refer it to OFGEM !!

‘even had a large refund a year ago.’ That should have put up a large RED FLAG. Credit/debit balances are only valid if they are based on an ACTUAL meter reading and then for one day only. Were you not surprised to get a large refund?

Refer your complaint to Ofgem if you like but you will get a standard response citing that it does not deal with individual consumer complaints. Escalated complaints can be referred to Ombudsman Services - a private company - for resolution. At best, you may get a few £ for what appears to be an administrative mistake. This could have been resolved earlier had you been monitoring your usage and statements.