As of 26 November 2016 GB energy supply has ceased trading. This basically means that GB Energy went bust.
As of 30 November 2016 Co-operative Energy was appointed by Ofgem to take over GB energy supply customers.
To learn more about Co-operative Energy read our review here.
GB energy supply posted the following update on its website. The review below is therefore somewhat academic. However, we have left it on the site as a historical record.
GB energy supply is (was) a new energy supplier which began taking on customers from January 2015.
The company makes many bold, but not unique, claims about what they offer;
"Bringing a fresh approach to home energy supply"
"Making it easy and effortless to switch and save"
"By running a highly efficient business and keeping our own costs low, we're able to offer a better deal for you - helping you save money on your gas and electricity bills."
"We also want to simplify this confused market by offering an online product using the latest technology and not punish customers with switching and exit costs."
None of the above seems to us either novel or unique but let's not get in the way of a good story.
On top of this GB energy supply claim to keep costs down by...
"We do not spend a small fortune on TV, Radio, or other advertising."
"We keep our overheads to a minimum."
"We do not pay to appear on switching sites."
"We use efficient online processes as much as possible."
The company goes on to claim...
"GB Energy Supply aims to keep its costs right down and grow the business through word of mouth." It also pledges to make it simpler for consumers to switch providers, their new motto being "It's easy".
While their prices were certainly competitive - at least until they hiked their tariffs by 30%, GB energy supply, like many of the growing number of new suppliers that have entered the market recently, is still an unproven entity. In addition, there are several things about GB energy supply that make us cautious.
Firstly, they are somewhat over-enthusiastic in taking money from the customer's account. Your first direct debit is taken from your account one week after at the end of the cooling off period. This is 21 days from application date. Physical supply however may not start until up to 21 days after payment is taken. This means that most customers pay up front - before they are even on supply. This means that you, the customer, are effectively funding the working capital to run the business.
Secondly, the company has negative net assets. It has equity capital of just £1000. To year-end 31 December 2015, the company reported pre-tax losses of £788k on revenues of £22.2m.
It is not unusual for a start up to incur losses; most do in setting up the business. However, with equity capital grossly insufficient to cover first year losses, it means that, should GB energy supply get into financial difficulties, then customers who have paid in advance, as unsecured creditors, risk losing those payments.
On top of that we have some concerns about where customers' money is going. Again it is not unusual for companies to deal with related party interests, particularly when small. However, GB energy supply is no longer a small company. What concerns us is that Parties related to GB energy supply are getting paid from cash generated from customer prepayments even while GB energy supply is losing money. To us, the principal party at risk here seems to be the customer.
GB energy supply is a new gas and electricity supplier which has now ceased trading. It launched its first tariff in January 2015 and entered the domestic energy supply market fully in April 2015.
The Company operates from offices in Broughton, within Preston.
GB energy supply offers a simple range of tariffs for customers who want to pay by Monthly Direct Debit (in advance) and to manage their account online.
GB energy supply offers gas only, electricity only and dual fuel tariffs.
GB energy supply does not supply prepayment meter customers.
GB energy supply is not signed up to the Warm Home Discount scheme.
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