Proceed with caution.
Please note that this message is not unique to Avro Energy but 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.
UPDATE: This provider was banned from taking on new customers in May 2019 but says this ban has now been lifted.
Avro Energy is a new supplier which began taking on customers from 1 December 2015. Their claim is that they provide "low priced energy in addition to simplicity with your supplier" which they aim to deliver by "maintaining a highly efficient business that keeps overheads to a minimum and is restrictive in the level of marketing commissioned".
While their prices are certainly competitive, Avro Energy, like many of the growing number of new energy 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 Avro Energy that make us cautious.
Firstly, they are somewhat enthusiastic in taking money from the customer's account. Your first direct debit is taken from your account at the end of the cooling off period. This is 14 days from application date. Physical supply however may not start until up to 21 days after payment is taken. This means that most customers pay up front before they are even on supply. This means that you, the customer, are effectively funding the working capital to run the business.
Secondly, the company has minimal financial backing. It has equity capital of just £100. To year-end 14 August 2015, the company reported negative net assets of (£12,842). It is not unusual for a start up to incur losses; most do in setting up the business. However, with equity capital insufficient to cover these losses means that, should Avro Energy get into financial difficulties, then customers who have paid in advance, as unsecured creditors, risk losing those payments.
Avro Energy is a very new gas and electricity supplier that entered the domestic energy supply market in December 2015.
The Company operates from offices in Nuneaton, Warwickshire.
Avro Energy offers a simple range of tariffs for customers who want to pay by Monthly Direct Debit and to manage their account online.
Avro Energy does not at present supply prepayment meter customers.
Avro Energy is not signed up to the Warm Home Discount Scheme.
Based on our review, we award Avro 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 Avro 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.
Avro Energy is NOT signed up to the Energy Switch Guarantee.
Compare Avro Energy and many more energy suppliers with our energy price comparison tool.
|Company name||AVRO ENERGY LIMITED|
|Registered Office Address||Unit 8, The Courtyard Goldsmith Way, |
Eliot Business Park,
Warwickshire, CV10 7RJ
|Date of incorporation||14 August 2014|
|Directors (1)||Jake Andrew Brown|
|Supply licence(s) granted||27 July 2015|
|Began selling energy to domestic consumers||1 December 2015|
All suppliers, including Avro 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.
Avro Energy has not yet published its fuel mix disclosure so we are unable to review it here.
In this section we review the published financial results for Avro Energy Limited.
|Year ended||14 August 2015|
|Profit before tax||Not published|
|Net current assets||(13,886)|
|Capital and Reserves||£|
|Profit and loss account||(12,842)|