IRESA Energy Review
Iresa Energy is (fortunately) not taking any new customers at the current time.
Apparently they have been told by the industry regulator, Ofgem, to sort out their rising complaints problem. Ofgem has not made any formal comment on the subject which is surprising indeed for a regulator which has a duty to look after the interests of consumers. However, it has been reported in the press including here.
Here is what one poor customer of Iresa Energy told us...
"Iresa took money from my account some weeks ago. Since then, despite my repeated emails asking for change over dates from my current supplier, I have received no reply. My only attempt to contact by telephone put me at 163 on the waiting list. after hanging on for 30 minutes I advanced to no 161. Two hours later when I telephoned again I had become number 165. Your comments on exercising caution when dealing with Iresa are, in my experience, amply justified. I regret not reading them earlier!
D R Brown
We sympathise. However our sympathy is unlikely to resolve these issues.
So, if you were thinking of switching to a cheaper energy supplier but are nervous about switching to poorly funded companies with little or no track record (and you should be nervous), then we would recommend you consider the following energy suppliers.
Our previous "Proceed with Caution" recommendation is issued for all new energy suppliers which have a limited track record, limited if any capital backing and which are unprofitable and / or have negative net assets. We are particularly cautious on those energy suppliers that take money from customer accounts before the customer comes on supply. We monitor new suppliers closely and should any of these circumstances change, for example a significant capital raise, then we will update our verdict accordingly.
However in view of the problems reported at Iresa Energy we have switched to an Avoid recommendation.
IRESA is a new independent UK gas and electricity supplier based in Nottingham. They began taking on customers in March 2016 and passed CME (Controlled Market Entry) in August 2016.
Their stated aim is to focus on price and quality of service. In addition they state their core values as being;
- Passionate about our customers and people
- Measure success through sustainable customer satisfaction and energy affordability
Their goal is to create their own proprietary technology, rather than paying a third party for outsourced systems or operations, which "will save money with the hopes of passing it down to the customers."
While their prices are certainly competitive, Iresa Energy, like many of the growing number of new suppliers that have entered the market recently, is very much an unproven entity. We are great believers in competition and also hugely admire the entrepreneurial spirit (we have built two start-ups ourselves) However, there are several things about IRESA Energy that make us cautious.
Firstly, they are too enthusiastic in taking money from the customer's account. Your first direct debit is taken from your account 3 days after the cooling off period. This is at least 10-12 days before the supply of energy even starts to your home. This means that you, the customer, are basically funding the working capital to run the business.
Secondly, the company has minimal financial backing. It has equity capital of just £1 (one British pound). While it appears to have built up some trading revenue and assets in its first year of operations, those financial assets have subsequently been depleted. To year-end 31 December 2015, the company reported negative net assets of (£89,167). It is not unusual for a start up to incur losses; most do in the start up phase. However, with equity capital insufficient to cover these losses, it means that, should Iresa Energy get into financial difficulties, then customers who have paid in advance, as unsecured creditors, risk losing those payments. Iresa is also reliant on upfront payments from customers to fund its growth and should customers ever wish to get back their excess deposits (as is their right) then Iresa could find itself with an unpleasant whole in its balance sheet.
Finally, we support their ambition to build their own technology to run their business. But building technology is not without its own risks. If it works they will probably earn a small fortune selling it to other energy suppliers. But if it doesn't....?
IRESA Energy is a very new gas and electricity supplier that entered the domestic energy supply market in March 2016.
The Company operates from offices in Nottingham.
IRESA offers a simple range of tariffs for customers who primarily want to pay by Monthly Direct Debit and to manage their account online.
IRESA Energy offers electricity only and dual fuel tariffs. It does not currently offer a gas only tariff.
IRESA Energy also offers a prepayment meter tariff.
IRESA Energy is not signed up to the Warm Home Discount scheme.
IRESA Energy will take you your first direct debit payment in advance, at least 10 days before you come on supply.
Based on our review, we award IRESA Energy no Stars.
Our service rating is based on the proportion of switches undertaken on the TheEnergyShop.com switching platform that complete successfully first time around. As we do not deal with IRESA Energy for customer sign-ups we have no insights into how good or bad their processes are. As such we have not awarded them a service rating. Please note that this does not necessarily mean that they are poor but, if you are switching to them, you are strongly advised to do your own due diligence.
To compare energy suppliers and switch to a cheaper tariff click here...
Energy Switch Guarantee
IRESA Energy is NOT signed up to the Energy Switch Guarantee.
Fuel Mix Disclosure
All suppliers, including IRESA Energy, are required to provide information about the mix of fuels they use to generate the electricity they supply to their customers. They also need to disclose the environmental impact of this fuel mix.
This information is known as the Fuel Mix Disclosure and is published annually.
IRESA Energy has not yet published its fuel mix disclosure so we are unable to review it here.
Company Overview / History
|Company name||IRESA ENERGY LIMITED|
|Registered Office Address||The Quadrant Business Centre, |
Nottingham, NG9 2NH
|Date of incorporation||21 August 2012|
|Directors (1)||Adeniyi Oluwaseun OLADEJI|
|Supply licence(s) granted||1 July 2014 (Gas supply)|
|1 July 2014 (Electricity supply)|
|Began selling energy to domestic consumers||March 2016|
In this section we review the published financial results for Iresa Energy Limited.
|Year ended||31 December 2013||31 December 2014||31 December 2015|
|Income Statement (£)||-|
|Revenue||Not disclosed||Not disclosed||Not disclosed|
|Profit before tax||Not disclosed||Not disclosed||Not disclosed|
|Balance Sheet (£)|
|Net current assets||27,548||13,436||(91,586)|
|Capital and Reserves (£)||-|
|Profit and loss account||28,984||14,539||(89,167)|
Source: Companies House
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