Real Business

March 2010

Customer King: Green Energy UK

In the end there was no doubt. Green Energy UK is this year’s Customer Kings Winner of Winners. And, wow – what an entry! We said we wanted to find companies that went the extra mile to engage with customers. Green Energy UK goes so far, it’s off the radar. In fact, its entry was so extraordinary that we doubted it could actually be true.

Douglas Stewart, Green Energy UK’s founder and chief executive, explains: “I am giving away half the firm to my customers. The first 100,000 receive 400 shares each. My financial adviser thinks I’m crazy. But when I started Green Energy, I wanted it to be a transparent firm – not simply run for the customer, but actually led by the customer. The share giveaway is the best way to achieve this.”

Just to emphasise: Stewart isn’t selling shares. He is handing out equity to anyone who signs up to Green Energy UK’s electricity. There is no sleight of hand. Green Energy UK’s solar, wind and hydro power is no more expensive than normal. And because the firm is 100 per cent privately funded, it is Stewart who takes the hit. “We started the firm in 2001, when consumers who wanted to be green were being punished by higher prices. We wanted to turn that on its head, and reward them. We also wanted to build a responsible business, which was answerable to its customers. My first idea was to create an investment fund for customers, but the compliance was too complicated. The next idea was to give away shares.”

Stewart admits the scheme is not easy to run: “Don’t do it if you want to keep your hair.”

Everything is overseen by the FSA, and although the shares are not yet tradeable, Green Energy UK is a regular plc. And the benefits? “We haven’t started advertising and yet we already have 10,000 customers on our books, all through word of mouth. Customers trust us. There is so much corporate greenwash out there, but our transparent approach is the best way of showing that we are different. We actively encourage our customers – our shareholders – to come to our AGM and quiz us. Who else does that?”

Naturally, Green Energy UK does a dozen other great things too. Take using picture messaging for meter readings, for example, or answering all phone calls within three rings, 24/7 (“You never get a machine, always a human”). It even buys energy from customers with microproduction facilities, such as home solar, wind or biomass turbines (“a growing sector”).

Turnover is up 45 per cent to more than £5m and gross profit is upward of £1m – a worthy Winner of Winners.