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13th Jul: Fantastic website good to see honest info. Out of curiosity if power suppliers are successful in getting customers to use less energy wouldn't they make lower profits and thus have to increase prices?

Asked by David Griffiths from North East, 13/07/2009.

Our business model is more complex than most because we try to help our customers use as little of our product as possible.

 

We focus on the number of customers that we can acquire and keep, rather than how much each customer spends. This helps us to continue to operate profitably, whilst keeping costs down for customers and helping them to minimise their carbon footprints. This also builds customer loyalty which is at the core of our business model.

For example – we’d rather have (and keep) ten green, energy efficient customers spending £2 a week, than two customers who struggle to pay £5 per week using energy they don’t need.

If we were to increase our prices because our customers were using less energy we would simply lose them to other suppliers.

We also offer our customers other services on top of their energy supply - it’s only by helping consumers with all aspects of household energy consumption that suppliers can stay competitive in the marketplace.

npower
Answered by npower employee at npower.

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