Are there more tough times ahead for Bristol City Council’s LOSS-MAKING electricity reselling business, BRISTOL ENERGY?
The private company, funded from our council tax, has already posted a £3M LOSS this year it doesn’t want you to know about. Meanwhile, total investment in the firm by Bristol City Council, although a closely guarded secret, is believed to top £9M. So will Bristol City Council ever see a return on this huge investment of our money?
Ovo is another local energy reseller that’s been running since 2009 and its business model is virtually identical to Bristol Energy’s. They both buy power wholesale off the ‘big six’ power companies who generate it and then try to sell it retail to customers for a profit. Ovo have just announced a £35M LOSS based on 400,000 CUSTOMERS. Bristol Energy has 80,000 CUSTOMERS.
Bristol Energy and Ovo both have the same problem: the cost of obtaining new customers. If you take apart the scant information available about Bristol Energy (their business plan is a closely guarded secret), it may well be COSTING THEM MORE to get customers than they will ever make in PROFIT from them in this low margin business.
Bristol Energy boss, Peter “HIGH PAY” Haigh pockets a six-figure salary for his troubles while claiming he will start making profits when Bristol Energy has “a large enough volume of customers”. However, Ovo with FIVE TIMES as many customers continues to run at a HUGE LOSS. What can Peter High Pay do that’s different?
But why should High Pay give a toss? He tops up his paltry six-figure salary from the council taxpayer with a LUCRATIVE DIRECTORSHIP at Energy Market Risk Ltd, consultants to the energy industry. Does Bristol Energy have a hope with High Pay at the helm? Does he even care while he’s spending other people’s money and significantly expanding his personal bank balance?
And why has Bristol City Council earmarked £7.5m of their capital funds to run this profitable ‘business’ over the next couple of years while they cut our public services?