At a recent BFY Group client strategy day, we discussed what it takes to grow a £x00m energy retailer.
A number of challengers have delivered incredible growth since entering the market, and gained ~1% market share in only four years of trading.
As you can see, Bulb and Octopus Energy pressed the accelerator hard in recent years to smash through the barrier of being billion £GBP revenue businesses.
With Ofgem recently ditching the "Big 6" / "Six Largest" moniker as a result of the dramatic changes in the market, energy retail is now a very different place.
Organic growth now requires more than just a deeply discounted price. The fastest growing suppliers are no longer the cheapest in the market.
Non-organic growth is also highly competitive. The Supplier of Last Resort process now requires a highly compelling bid 'price' in the form of customer tariffs and protecting customer credits, and a deep understanding of what Ofgem needs to see in the tender response.
Suppliers should now be taking time to ensure they have a robust growth strategy to thrive in the market.
Our key recommendation for suppliers is simple: think ahead.
Ian Barker
Ian shapes the BFY vision and inspires our team to bring it to life, while remaining central to complex client engagements in Strategy, Commercial, and Operations.
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