公共事業(料金)/有用性 倉庫/問屋 boss Stuart Burnett: 'We can take on the Big Six of energy'

  • 公共事業(料金)/有用性 倉庫/問屋 recently reached 1m 顧客s and is the 7th biggest 供給者
  • It is now positioning itself as a 挑戦者 to the Big Six energy 会社/堅いs?
  • But how keen are 顧客s on its selling point of 'bundling' different services?

Stuart Burnett?joined 公共事業(料金)/有用性 倉庫/問屋 in 2016, having started his career as a lawyer in the City before moving in-house at an 保険 会社/堅い.

He worked his way up in an unusual fashion, going from a 上級の lawyer to working in 操作/手術s and 結局 becoming co-CEO in November 2021.

The company itself does things わずかに 異なって, too.?Unlike other players in the energy market, 公共事業(料金)/有用性 倉庫/問屋 also 申し込む/申し出s broadband, 動きやすい and 保険, and 許すs 顧客s to 'bolt on' different services under a 選び出す/独身 法案.?

The softly-spoken Burnett is 予定 to take the reins on his own later this year and is on a?使節団 to grow its 顧客 base.?It recently became the?UK's seventh-biggest energy 供給者, knocking on the door of the 設立するd Big Six.?

He told This is Money about his 計画(する)s, and why he thinks 公共事業(料金)/有用性 倉庫/問屋's multi-service model could make it the 挑戦者 that all four markets need.

Stuart Burnett became co-CEO in 2021 and will take the reins on his own later this year

Stuart Burnett became co-CEO in 2021 and will take the reins on his own later this year?

'Not just an energy 商売/仕事'?

FTSE 250-名簿(に載せる)/表(にあげる)d parent company Telecom 加える 開始する,打ち上げるd 公共事業(料金)/有用性 倉庫/問屋 in 2002 as a 子会社 through which to sell energy, 動きやすい and broadband 取引,協定s.

Its unique selling point is? that it 申し込む/申し出s 核心 世帯 services in a bundle with a 選び出す/独身 法案.

顧客s can 選ぶ and choose which services they want, and while they can have just one, they'll only really receive the 利益s and 割引s when they 調印する up to two or more.?

The more services they 追加する, the bigger the 割引 they receive.?

It recently reached 1million 顧客s across the UK, the 大多数 of which are energy 顧客s. The company says an 増加するing number are taking energy and one or two other services, with an 普通の/平均(する) of three services taken per 顧客.

'We don't think of ourselves as an energy 商売/仕事 even though we 供給(する) energy, in the same way we don't think of ourselves as a broadband, 動きやすい or 保険 商売/仕事,' says Burnett.

'By having that sin gular 関係 for all of these different services, we have a much tighter, closer 関係 with our 顧客s than just a standalone energy 供給者 or broadband or 保険 provider.

'They 見解(をとる) us as a 重要な part of how they run their lives and their home.'

It has 静かに built a solid but still 比較して small 地盤 across each of its 部門s. In its most 最近の results, Telecom 加える said energy prices had been a strong driver of 歳入 in the past year.

It also said its 顧客 取得/買収 was 大部分は 負かす/撃墜する to its 'unique and hard-to-replicate word-of-mouth 取得/買収 model'.?

?The only 推論する/理由 we can price 異なって is because we bundle energy together with other services

This is essentially a multi-level marketing 計画/陰謀 which 支払う/賃金s 顧客s to 新採用する others. 公共事業(料金)/有用性 倉庫/問屋 (人命などを)奪う,主張するs 'active' partners can make around £500 a month.

Given the 欠如(する) of meaningful 競争 in the energy market at the moment, it is also looking to entice 顧客s with its 割引d 取引,協定s.

The company is 現在/一般に 申し込む/申し出ing a £20 割引 to the Ofgem price cap, which is 始める,決める at £1,690 until July, if 顧客s have bundled two services. This 増加するs to a £50 割引 for 顧客s with three services.

'The only 推論する/理由 we can price 異なって isn't because we buy our energy in a different way to anybody else or 一括 our energy in a different way, it's because we're bundling it together with other services,' says Burnett.

Time for a new wave of energy 挑戦者s???

The notion of 存在 a 挑戦者 in the energy market has 協会s with the 最近の past that might not be 完全に welcome.?

Two and a half years ago, there were 44 active 国内の 供給者s in Britain, 負かす/撃墜する from a 頂点(に達する) of 70 in 2018. Now there are just 19, に引き続いて the 崩壊(する) of many small 会社/堅いs.?

Smaller 供給者s had flooded the market, 申し込む/申し出ing 削減(する)-price 取引,協定s that were, in the long-run, unsustainable. When 卸売 energy costs 急に上がるd in 2021, a number became a 犠牲者 of their own success and 崩壊(する)d.?

It has meant that the Big Six 供給者s have come to 支配する the market again.?

However this time 一連の会議、交渉/完成する, the once 勇敢な upstart Octopus Energy has 堅固に 設立するd itself as one of the Big Six.

Utility Warehouse offers four main services to its customers, who receive discounts the more they add to their bundle

公共事業(料金)/有用性 倉庫/問屋 申し込む/申し出s four main services to its 顧客s, who receive 割引s the more they 追加する to their bundle

Ofgem 人物/姿/数字s show it now has a 17.4 per cent 株 of the electricity market, and に引き続いて its を取り引きする 爆撃する Energy, means it is now 本気で 争う for the 最高の,を越す prize.

公共事業(料金)/有用性 倉庫/問屋 is now the country's seventh biggest energy 供給者, meaning it is in prime position to be the next 挑戦者.?And it 受託するs the label with open 武器.

'We're the 主要な 独立した・無所属 挑戦者 to the Big Six,' Burnett says. 'The last few years we've grown by の近くに to 50 per cent, breaking through the 1million 顧客 示す. That's because we're doing something different and people recognise the value and 利益s of what we're doing.

'For other 供給者s I don't know what their 焦点(を合わせる) is, but at the moment they're all doing the same thing.'

It is somewhat mystifying that Burnett positions 公共事業(料金)/有用性 倉庫/問屋 as a 挑戦者, though, given Telecom 加える is 25 years old and a FTSE 250-名簿(に載せる)/表(にあげる)d 商売/仕事 with a £1billion market cap.

But he thinks this 現実に plays to his advantage: 'The big difference compared to most 挑戦者s it that we've got a long-称する,呼ぶ/期間/用語 跡をつける 記録,記録的な/記録する. We're a 挑戦者 with 安定. There have been too many 挑戦者s over the years that have come and gone. Tha t's not us at all.'

'If they're pricing lower than everyone else but doing the exact same thing as everybody else then 最終的に that's going to 結局最後にはーなる with a problem.'

Given the volatility of the energy market since 2021, Burnett is 権利. But 公共事業(料金)/有用性 倉庫/問屋 aren't the only stable, 井戸/弁護士席-run company in energy - or indeed across 保険, 動きやすい or broadband.

Which means that its defining characteristic remains the fact it is a one-stop shop for 世帯 services, which while different within the energy market is hardly reinventing the wheel.

?You have to be a responsible, 井戸/弁護士席 run 商売/仕事 to be a 挑戦者

Instead it 示唆するs a changing perception of what it means to be a 挑戦者 in the 現在の 気候.

Burnett 示唆するs that there was a period 'where 存在 a 挑戦者 基本的に meant 申し込む/申し出ing the cheapest prices without doing anything different to anyone else.'

He says he thinks 'there has been an 評価 that 存在 a 挑戦者 you have to be a responsible, 井戸/弁護士席 run 商売/仕事 to be a 挑戦者. 反して maybe before the mindset was maybe, anyone can give it a try.'

If a 挑戦者 is 単に now 'smaller than the 現職のs' then how much 競争 can there be?

Burnett 収容する/認めるs that, as a multi-service provider, 'You can't be the innovator in these marketplaces on an individual… you can't be the innovator in energy in the way you could be if you were just an individual 商売/仕事.'

Instead he thinks 顧客s 'just want these services to work and not be ripped off.'

While 公共事業(料金)/有用性 倉庫/問屋 isn't innovating in the same way, the idea of one 選び出す/独身 世帯 法案 is novel.

If it's to continue to differentiate from other players across the four markets it operates in, it will need to continue doing that.

Savvier 顧客s 現在の a challenge?

Could we see more and more services 存在 追加するd? Burnett's background in 保険 - he was a lawyer at RSA - means he is open to the idea.

'Because one of the main 目的(とする)s is 簡単, we have to make sure we keep that 前線 of mind. There could be a point where having too many things as part of the bundle could 現実に 追加する 複雑さ.'

'The obvious places to go next are… we have home 保険, boiler cover… There are 明白に other personal lines of 保険 that would fit neatly into our bundle 同様に.

'We do have to make sure we're not just 追加するing more and more and more, it's got to be done in a way that stays to true to the 原則s of 貯金, 簡単 and service.'

Wised up: Customers today don't necessarily mind having a few different bills each month - but Burnett says that in future his firm aims to eliminate contracts altogether

Wised up: 顧客s today don't やむを得ず mind having a few different 法案s each month - but Burnett says that in 未来 his 会社/堅い 目的(とする)s to 除去する 契約s altogether?

The 問題/発行する for 公共事業(料金)/有用性 倉庫/問屋 is that 消費者s have wised up and many aren't as 混乱させるd by 多重の 法案s going out over the course of the month.

簡単 might be the 申し込む/申し出ing, but 顧客s 推定する/予想する more and are more likely to look around to enjoy better 割引s.

Even though 顧客s get money off for bundling different services with 公共事業(料金)/有用性 倉庫/問屋, it might still have been cheaper if they took out individual 契約s for each one どこかよそで.??

Additionally, if a 顧客 takes out a 12 month 直す/買収する,八百長をするd energy 関税 and an 18 month broadband 関税 and they choose to leave after 12 months, they could 直面する hefty 出口 料金s.

It is an area Burnett 認めるs needs work: 'Our ultimate 願望(する) is that you don't have any 契約s for these services and you don't have differential prices.'

公共事業(料金)/有用性 倉庫/問屋 現在/一般に 申し込む/申し出s variable 関税s for its energy 顧客s 同様に as a small 量 of 直す/買収する,八百長をするd 関税s for 12 months.

Its 動きやすい sims are on a rolling 30-day 契約 but its broadband 取引,協定s are usually 18 months.

'It's an area where you still have those 契約s and the difference between new and 存在するing 顧客 pricing, ' he says.?

This practice - known as price walking - has already been banned in 保険 but other 部門s have failed to follow 控訴.

'Because it's so 流布している in the broadband marketplace, that's something we have to 参加する in 同様に.?

'It's very difficult to go out on your own. We would really 堅固に 支持する... There's a 抱擁する 顧客 利益 from everybody having 接近 to the same pricing.'

As with Burnett's own career, 公共事業(料金)/有用性 倉庫/問屋's trajectory is likely to be an unusual one as it 目的(とする)s to make 前進 in all four of its markets.?

But with each of the 部門s 直面するing 不確定 and 近づく-constant volatility, perhaps it is 正確に/まさに what the company needs to fully embrace its 挑戦者 肩書を与える.?