Matt Stockdale, the founder of HomePride – the maker of oven cleaning product OvenPride – says that the company will provide gas and electricity straight from the wholesale market, cutting out the middlemen.
As a not-for-profit organisation, limited by guarantee, At Cost Energy has no shareholders to satisfy, says Stockdale, meaning there are no profits to be made or bonuses to pay. “It’s just the same gas and electricity, but at cost.”
He admits that the price of gas and electricity will continue to vary – as fluctuations are outside of his control – but says that when the prices drop back down, so will customers’ bills.
“The recent practice of hiking customer prices and then holding them there disgusts me – it’s one of the things I’m most looking forward to banishing forever,” he says.
At Cost Energy cannot yet reveal how much the “at cost” rates will be, as it will depend on how much demand the company gets. But Stockdale claims that initial calculations show that the average household could save a minimum of £320 per year.
Stockdale’s new company comes just a week after British Gas announced its profits were up by 58 per cent to £598m, which prompted widespread anger from customers.
“This is it – the beginning of The People’s Energy Company,” says Stockdale. “There is no catch. We’re going to provide an open an honest service. We don’t want to just separate ourselves from the establishment with our prices, but with our approach to customers as well.”
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