It’s been a while since a new energy supplier entered the market in Northern Ireland, but the wait is finally over….
Bright Energy went live this week and say they are on a mission to bring green, affordable energy to people with one simple tariff.
So, let’s take a look at their offering….
Who is Bright Energy?
Bright is a new supplier providing electricity to customers right across Ireland. Although they may be a new energy supplier the people behind Bright have many years’ experience working across the energy market in Ireland.
Bright Energy is a partnership between two local family businesses Evermore Energy and The Maxol Group.
What is the Bright idea?
Bright offer one simple variable rate tariff for everyone. So, no big introductory discount for new customers or rates that hike up after the first year. Because there is only one tariff all customers will always be on the best rate offered by the company.
The rate will track the wholesale market, Bright says, so that when prices fall, savings can be passed on to customers quickly…but remember prices can go the other way as well.
Also, customers aren’t tied into any year-long contract. So, if you sign up and feel like there’s better value to be had elsewhere, you can leave at any time and not be hit with an early exit penalty.
And those who are environmentally conscious will be pleased to know that Bright to provide only 100% green electricity too.
What tariff do Bright offer?
Bright Energy provide one variable rate tariff for both bill pay and keypad customers… with their tariff available to both new and existing customers
24Hr Bill Pay tariff
So how do the offer stack up…
Based on an average consumption of 3,200kWh per year a bill pay tariff from Bright will cost £527, and a Pay as You Go tariff £561. These are more expensive than other deals available at the moment but Bright say any fall in energy prices will be passed onto their customers.
What actually is a Variable Rate Tariff?
Variable rate tariffs do just what their name suggests: they vary. This means the price you pay can increase and decrease in line with wholesale costs and other charges. So, if these costs and charges increase, they will be passed on as higher tariff charges…similarly if they fall you will benefit from lower tariffs.
Variable rate tariffs are different from the other types of tariffs which are common amongst suppliers in Northern Ireland – fixed price and discount tariffs.
With a fixed price tariff, the rate you pay will be fixed for a certain period of time. Many suppliers also offer discount tariffs especially for new customers – this is usually a set percentage discount off their standard rate. And although the tariff rate may change the discount rate will remain the same for the contract period, usually 12 months.
Whether you choose a fixed price tariff, discount or variable tariff depends on what you like in terms of a deal – there are lots of deals available so use Power to Switch to see all offers from all suppliers…it makes picking the best deal easy!
What we think at Power to Switch
The arrival of Bright to Northern Ireland brings the number of electricity suppliers now to six. A new supplier brings increased choice and competition to the market which is a good thing for consumers.
With one variable rate tariff the pricing structure is simple and straightforward. Offering the same rate to all customers does mean that there is some ‘equality’ across new and existing customers. But customers often expect promotions, discounts or other offers to attract or retain their business…however a simple, straightforward, competitive rate may work.
Price is always key….and although Bright highlight that they offer the cheapest standard variable tariff in Northern Ireland they are one of three suppliers (including Budget Energy and Click Energy) to add a separate Standing Charge onto their bill.
And with Brights annual standing charge of £40.84 for bill pay customers and £44.16 for Pay as You Go customers these are the highest of all three suppliers who add standing charges separately. Read our recent bog to find out more about Electricity Standing Charges
Technology is also at the forefront of the Bright approach…they state that their technology driven, and simplified approach will change how people manage and pay for their energy. It will be interesting to see if the ‘mix’ between a simple tariff rate and sophisticated software helps build their market share over the coming months.
Comparing Energy Prices
Check out what the new Bright tariff may mean for your bills with Power to Switch. We compare deals and offers from all energy suppliers in Ireland to find you the best deal. Switching is quick, hassle-free and means you keep more money in your pocket.