New Not for Profit Energy suppier threatens to quit the market.

[Dingus]

In the wake of Ed Miliband's pledge to peg energy prices a new NOT FOR PROFIT energy supplier has threatened to quit the market.

 

http://www.bbc.co.uk/news/business-24238619

 

A small new supplier planning to sell gas and electricity has warned that it could abandon the market as a result of Labour's plans to cap energy prices.

 

David Casale, who is planning to launch a not-for-profit energy business said, "If this looks anything like becoming policy in the UK we will pull out."

 

"We are very close to launching," he added, "This is really unhelpful."

 

His business, Open4Energy, is one of only a handful of new suppliers challenging the energy companies.

 

They have licences from the energy regulator, Ofgem, to buy and sell energy in their own right.

 

The aim is to match the cheapest standard Direct Debit tariff offered from day to day by the major suppliers and donate surplus profits to charity.

 

It would be a tiny player in comparison, but the warning is an early sign of how Ed Miliband's price-capping policy could have an impact on competition.

 

Mr Casale was hoping to launch in the new year and recruit more than 100,000 customers after three years. Now he is concerned that backers will be unwilling to bankroll the venture.

 

"Investors are asking if we are heading for a nationalised industry here," he said, "Anyway, this is bad policy which won't work."

[poppet2]

If they are a 'Not for Profit' organisation, what is their problem?

They should be way cheaper anyway, and therefore wipe out their competitors.

[Dingus]

If they are a 'Not for Profit' organisation, what is their problem?

They should be way cheaper anyway, and therefore wipe out their competitors.

 

You clearly don't understand not for profit. Building societies are not for profit but they still have to pay staff wages. John Lewis is not for profit but I don't see anyone working there for now't.

 

I suppose a not for profit energy supplier will still go bust if they have to sell power at a loss because the competition is doing the same. They need investors to set up the company and its infrastructure. No one is going to do that if it all goes down the pan within 12 months.

[poppet2]

You clearly don't understand not for profit. Building societies are not for profit but they still have to pay staff wages. John Lewis is not for profit but I don't see anyone working there for now't.

 

I suppose a not for profit energy supplier will still go bust if they have to sell power at a loss because the competition is doing the same. They need investors to set up the company and its infrastructure. No one is going to do that if it all goes down the pan within 12 months.

 

Who said anything about the staff not getting paid.

Not for profit means the balance you are left with at the end of the financial year, after paying ALL other outgoings, (which includes wages).

[angos]

Who said anything about the staff not getting paid.

Not for profit means the balance you are left with at the end of the financial year, after paying ALL other outgoings, (which includes wages).

 

But they still have to be able to sell the energy for enough to cover their costs, which might not be possible if Labour cap energy prices, this could be is why they are probably thinking of pulling out.

[iansheff]

But they still have to be able to sell the energy for enough to cover their costs, which might not be possible if Labour cap energy prices, this could be is why they are probably thinking of pulling out.

 

I can't see how they wouldn't cover their costs look at the profits the big 6 make. Would be interesting if a paper did a poll to find out how many people would be prepared to ditch their supplier to force one of the big 6 out of business.

[geared]

It's all aload of hot air anyway, it's not like Labour would ever follow through.

 

I'm far more interested in this new company Open4Energy, what with winter around the corner it might be a good time to switch.

 

Does anyone else think it's all abit of a publicity stunt to look at the new company (he says Googling it now)

Well played David Casale

[Lockjaw]

In the wake of Ed Miliband's pledge to peg energy prices a new NOT FOR PROFIT energy supplier has threatened to quit the market.

 

http://www.bbc.co.uk/news/business-24238619

 

A small new supplier planning to sell gas and electricity has warned that it could abandon the market as a result of Labour's plans to cap energy prices.

 

David Casale, who is planning to launch a not-for-profit energy business said, "If this looks anything like becoming policy in the UK we will pull out."

 

"We are very close to launching," he added, "This is really unhelpful."

 

His business, Open4Energy, is one of only a handful of new suppliers challenging the energy companies.

 

They have licences from the energy regulator, Ofgem, to buy and sell energy in their own right.

 

The aim is to match the cheapest standard Direct Debit tariff offered from day to day by the major suppliers and donate surplus profits to charity.

 

It would be a tiny player in comparison, but the warning is an early sign of how Ed Miliband's price-capping policy could have an impact on competition.

 

Mr Casale was hoping to launch in the new year and recruit more than 100,000 customers after three years. Now he is concerned that backers will be unwilling to bankroll the venture.

 

"Investors are asking if we are heading for a nationalised industry here," he said, "Anyway, this is bad policy which won't work."

 

Hmm; strange.

 

On the other thread you seem to be lamenting potential loss of profit by the big energy companies whilst, on this one, you are lamenting the potential demise of a company which would cause those companies to lose profits.

[poppet2]

But they still have to be able to sell the energy for enough to cover their costs, which might not be possible if Labour cap energy prices, this could be is why they are probably thinking of pulling out.

 

Then Miliband's government should sponsor it at the proposed capped price if they win the election.

[angos]

I can't see how they wouldn't cover their costs look at the profits the big 6 make. Would be interesting if a paper did a poll to find out how many people would be prepared to ditch their supplier to force one of the big 6 out of business.

 

Britain’s big energy companies are making profit margins of £125 a year from every household in the UK, so there isn't much margin for cutting prices.

 

Best case scenario is they all decide to go no profit and you save £125.