This is a fair and reasonable question. After all, why can we afford to be cheaper without going bust when the others are so much more expensive?
The electricity market is complex with many, many, counterparties in the market and each of these parties adds to the price of electricity. The biggest cost is staffing in a complex market and of course in the case of the larger companies, shareholders and expensive management boards.
Symbio Energy can mitigate this as a new entrant by utilising the latest software solutions and architecture to minimise staff costs and of course, we do not have a bloated management structure.
Our hope is to emulate the growth in low cost airlines by concentrating on technology, increasing efficiency and minimising waste costs. Most importantly, the failures in the industry have arisen due to cash flow management. This is difficult as the price of energy fluctuates dramatically and due to customers, that fail to pay. Failure occurs if sufficient buffers of cash have not been kept addressing unexpected spikes in energy prices and provisions for climate change.
Symbio is currently sending bills, a month after an effective switch and monies are collected up to 4 weeks later. This is a huge strain as credit and bank costs are onerous. Hence like the rest of the industry we will be moving to taking a direct debit based on the estimated advance usage by a customer for the forthcoming month. The bill once invoiced will be set off against the monies held on account and a balancing payment requested equivalent to estimated consumption of energy expected. When a customer leaves, the final bill will be a small refund to the customer or a small final bill.
In order to keep prices low, we only offer direct debit tariffs at present so that delayed payments do not affect the company and the many customers who are able to pay on time.
We do however understand that circumstances change and we will always find ways of assisting those in trouble due to a change of circumstance.