The ranks of Britain’s 40-plus energy companies is set to swell come January 16th, thanks to the launch of Fischer Energy’s innovative new proposition. Delivering energy sourced solely from wind farms, the supplier hopes to ensnare around 40,000 single variable customers in its first year of business. Its entry into the retail market comes close on the heels of GB Energy’s collapse, but the new venture is undeterred, despite concerns that the energy sector is approaching saturation point.
Although many have questioned the wisdom of signing up for a variable tariff as wholesale prices rise, Keith Bastian, the company’s chief executive, has explained that Fischer was launched to combat the inequality of multiple tariffs.
In his words: “That will in effect put the customer first. They can buy the energy knowing it’ll be a fair price. It won’t be the cheapest, we can’t guarantee that, but it will be fair.”
The business, which is family owned and located in Leicester, has no intentions of following in the footsteps of predecessor GB Energy. As a result, they have stated that they will not be drawn into the race to the bottom on prices.
The company will face competition from a number of existing green energy suppliers, including Ecotricity and Good Energy, but the names behind it do not seem overly worried by this.
They will also be up against the existing Big Six and numerous other small fry – not a problem in their eyes. As Mr. Bastian explains: “Green energy is the only way forward. Burning carbon fuels is not the solution.”
Despite this, trends observed at Moneysupermarket show that standard suppliers are still very much in demand, with customers erring towards the most established players in favour of smaller concerns.
In the view of expert Joe Malinowski: “I think the market is way oversaturated with new entrants. It doesn’t need another one, and what they’re doing is not unique.”
Despite such pessimism, Fischer look like they will not remain as the newest entrant to the retail energy market for long. Edinburgh-based couple David Pike and Karin Sode also have their eye on founding a novel enterprise and are currently crowdfunding to raise £450,000 for their purpose.
The innovative venture, which would share its salaries and accounts with customers for increased transparency, offers another new and unique take on energy supply, yet looks fated towards a future that is just as uncertain as Fischer’s.
Does the oversaturated market really need another green energy supplier? Only time and its vagaries will tell, but it seems that many entrepreneurs remain convinced that they could do better.