Pledging exceptional customer service & giving 5% rebate to first 5,000 customers
A new domestic gas and electricity company, Home Energy, is launching today as the first in the UK set to give a significant part of its business to charities. Its customers will effectively be donating 20% of the company plus approximately 1.5% of its annual income to their chosen causes while they heat and light their homes.
Home Energy is pledging exceptional standards of customer service, with a high call centre staff-to-customer ratio and a focus on support quality above growth.
With the Big 6 all due to increase their prices by around 10% from next Monday (1 April) as Ofgem raises the price cap, Home Energy should provide most customers with a notable saving compared with the dominant firms. As an introductory offer, the company is also giving a 5% rebate on the first 5,000 customers’ first year’s bills.
People can switch to Home Energy via its website www.homeenergy.co.uk from today and nominate a charity to receive the cash value of shares in the business when it floats on the stock market around 2025. Based on a conservative flotation valuation of £100 million, this could create a £20 million windfall for worthy causes. Until this time, the charitable shares are being held in a trust.
Home Energy will also make annual donations of approximately 1.5% of its income to its customers’ nominated charities from the start. Based on a conservative forecast of turnover, these annual donations could exceed £2.5 million in five years’ time.
Home Energy has identified five charitable areas which customers can choose to receive the value of 20% of its shares, each having personal meaning for the company’s founders: hospices, neurodegenerative diseases, Alzheimer’s and dementia, cancer, and animal welfare. Alternatively, customers can nominate a specific charity of their choice.
Home Energy is also in discussions with a number of organisations — including two national cancer charities — about partnerships to help grow the business and hence the funds that will go to the good causes.
Kevin Stoker, Founder & CEO of Home Energy, explains: “We’re determined to set an example of how companies and charities can work together — creating new ways for ethically-minded people to give to good causes, simply by being a customer. We’re breaking the mould of how businesses can harness customer action for social good.”
The domestic energy sector has seen a number of companies fail over the last year. Since opening up the market to new competition, energy regulator Ofgem has overseen the entrance of dozens of new companies, but 10 of these have closed down in the last year alone. Poor customer service, unsustainably low prices and ineffective cash management were most often cited for Ofgem’s withdrawal of their licences.
Kevin Stoker comments: “We’re one of the most experienced teams to launch a domestic energy supplier in recent years. Our 11-strong leadership team has more than 250 years’ management experience, with over 100 years in the energy sector. We’re sharply focused on what we know many customers want — a competitively priced supplier providing excellent service. Too many firms have gone all out for rapid growth, providing terrible customer support and soon going out of business. And we’re the only supplier whose customers know they’re benefiting society while they watch TV and boil the kettle.”