31st Mar 2015 07:51
LONDON (Alliance News) - Flowgroup PLC Tuesday said it will re-enter the UK energy market on April 7 with a new fixed-rate tariff that offers fixed prices until the end of March 2016, with the aim of growing its customer base.
The company is a new entrant to the UK energy market. It has designed a new boiler that produces both heat and electricity for homes, and started producing them in January. It also has an energy business that offers customers gas and electricity supply deals.
Earlier this month it said its energy business "grew steadily" during 2014, generating GBP33 million in revenue as it attracted 66,000 customer accounts since its launch in 2013. It wants the business to grow rapidly.
It said its new tariff is "designed to be one of the most competitive tariffs on the market and is priced to attract customers to Flow Energy, as well as to retain existing customers".
The move comes as the UK government encourages UK consumers to hunt for cheaper energy supply deals by switching providers. Several surveys have shown that customers may be able to get better deals by switching away from the UK's so-called 'Big Six' suppliers to the smaller, newer providers.
"Changing consumer behaviour around energy, with higher switching rates and a move away from the Big 6, as well as governmental focus on encouraging switching, means the energy market presents an opportunity for our business in 2015," Flowgroup Chief Executive Tony Stiff said in a statement.
"Our new tariff will, we believe, allow us to grow Flow Energy's customer base. This would bring significant benefits to the group, as it did in 2013 and 2014. As well as generating additional revenue, our larger customer base would provide a perfect opportunity to cross-sell the Flow microCHP boiler, as well as other energy efficient products," he added.
Flowgroup shares were down 0.3% at 28.53 pence early Tuesday. The stock has fallen since the company started producing its new boiler in January, prompting the company to put out a statement in late January saying it didn't know why the stock had fallen.
By Steve McGrath; [email protected]; @stevemcgrath1
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