Presentation Transcript

1. Citrus Energy Ltd

   Frank A. SweeneyChief Executive
2. Introduction to Citrus Energy Ltd “Citrus Energy is the energy advice and fuel switching subsidiary company of the award winning Registered Social Landlord Cunninghame Housing Association Ltd. Citrus provides a truly impartial energy cost reduction service to both business and home energy users to help them save money on their gas and electricity bills. As a Social Enterprise within the Cunninghame Housing Association Group we are uniquely placed to help the most vulnerable in society. We will provide our services throughout Ayrshire and beyond and will contribute to the local economy both in the savings we generate to customers and in the employment we create”
3. Introduction to Citrus Energy Ltd “Citrus Energy is the energy advice and fuel switching subsidiary company of the award winning Registered Social Landlord Cunninghame Housing Association Ltd. Citrus provides a truly impartial energy cost reduction service to both business and home energy users to help them save money on their gas and electricity bills. Fuel Poverty Advice (Heating System Grants, Insulation, Fuel Arrears Reductions) As a Social Enterprise within the Cunninghame Housing Association Group we are uniquely placed to help the most vulnerable in society. We will provide our services throughout Ayrshire and beyond and will contribute to the local economy both in the savings we generate to customers and in the employment we create” Domestic service funded by The Big Lottery Support and Connect Fund (£136,183) and the Scottish Government’s People and Communities Fund (£122,718)
4. Why We Set Up Citrus Energy As a replacement for our highly successful former home energy advice ‘HEAT’ team who’s funding finished in 2012. We recognised there was the ongoing demand for this home energy “hands on” advice service and wished to replicate it. 2) With over 2000 tenants and with the emergence of Welfare Reform and Universal Credit we recognised it was important to have a service in place to help our tenants. We had identified (via the heat team statistics) energy costs as being one of their major financial outgoings. Working with a wide spectrum of businesses in the Ayrshire area as part of our developing social and economic development initiatives we recognised that they had sometimes issues with their energy bills. Many had been dealing with energy suppliers and commercial energy brokers and didn’t really know if they were receiving the best advice?
5. Why We Set Up Citrus Energy 4) Cunninghame Housing Association has always helped create employment in North/East Ayrshire, through its housing trainee programme we have over the last 4 years provided opportunities for 39 young people (85% into employment / fulltime education i.e. 33 from 39) and we believed that Citrus Energy could continue to create training and employment opportunities in Ayrshire. 5) We recognised that funding streams are becoming limited and we wished to set up a service that would hopefully, in time, be financially self-sustainable. 6) We looked at the service currently being offered by “competitors”. We thought we could offer a good option to all customers.
6. 4 Parts to Citrus Energy For businesses/charities - Commercial Energy Brokering – we can help Charities, Social Enterprises and Businesses to reduce their energy costs, by providing our free energy procurement service. For home energy users -Domestic Energy Switching – with fuel poverty being such an issue and Welfare Reform we can help householders (tenants or owners) to get the best energy deal. We will remove the hassle and provide a hand holding service to help people to switch. With savings, on average, in excess of £400 this is a great opportunity to reduce their costs.
7. 4 Parts to Citrus Energy For complete home energy advice - Lemon Aid – we can provide a Home Advisory Service for those most vulnerable and requiring comprehensive advice on reducing their energy costs and consumption, with signposting to other relevant advice services such as energy arrears write off or reductions in debt. We will provide this service on referral from front line advice agencies. For Public, Private and Social Landlords - Void Management Service – we will deal with all aspects of void meter re-setting on behalf of any landlord, this removes the issues surrounding corresponding with energy suppliers. The priority however is that the new tenant can move in with no debt left on meters and with the cheapest energy supply available to them, thus helping them sustain their tenancy.
8. Challenges for Citrus Commercial New sector and Regulator (Ofgem) Product knowledge. Competitive market place with other long standing Commercial Energy Brokers. Establishment of Third Party Intermediary Agreements (essential to have industry knowledge) Establishing appropriate systems and processes as there are numerous requirements to follow and monitor contract lengths, and details relating to contracts. Energy market reform (Ofgem). Invoicing and dealing with differing supplier payment terms. Inexperienced Telesales staff. Training for Telesales staff (metering knowledge). Wholesale procurement knowledge. Legal Support (Rule Book). V.A.T. knowledge. Group Structure. Needs to sell and make a profit.
9. Challenges for Citrus Domestic Obtaining Funding – we applied for funding to The Scottish Governments People and Communities fund and The Big Lottery , and were successful (approximately £125,000 from each). The funding criteria stipulated that the person(s) had to be unemployed and reside in Ayrshire. We have to ensure that 16 trainees in total, pass through the funding period ( which runs from Sept 13 to April 15) We have certain switch targets to achieve – 3450 switches by April 15. £78000 fee income earned from switching. All calls must be recorded – we had to source and install our Annodata call centre software in time for launch in October 2013. We had to find a reputable switch platform provider – we employed Energylinx in April 13. They are part of the Ofgem confidence code of switch platform providers, and they show every energy tariff available in the UK with no bias or consideration of commissions paid. All of our trainees must undertake accredited training. We had to establish statistical data collation systems to ensure the funders can receive reports when required. We had to establish partnership links with front line service providers such as ; CAB, North Ayrshire Council, Fellow RSLs, Money Matters, Home Energy Scotland, 1st Alliance Credit Union, G Heat and many more. We had to develop a marketing strategy / plan to market the service. Needs to make its funding targets.
10. Citrus Energy Pricing Our commercial energy service is free to use. We are paid introducer fees direct from the energy suppliers. Our domestic energy switch service is also free to use. Our domestic team are funded by The Big Lottery and The Scottish Governments People and Communities Fund. Our Lemon Aid services are free to use, and are solely based in Ayrshire, due to funding and geographical restrictions. We will charge £10 per void processed. The time and money saved on staff time, rental income and debt apportioning make this an extremely cost effective service. CHA’s void relet time is 6 days
11. Partnership Working We want to work with as many partners as we can ! The full impact of the services Citrus can provide will only be utilised to the full if we work well with other like minded organisations. We would like to replicate our services throughout Scotland and the UK. We already have the blueprint, why re-invent the wheel? Social Enterprise is all about benefiting the communities we work within, this means sharing profits for the common good. (Investing In Communities) Why not talk to us?