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The first new UK supplier in two years now serves 200,000+ households with a $5bn valuation. But in a market haunted by 28 collapsed suppliers, can fintech veterans succeed where energy veterans failed?
When Fuse Energy launched in July 2023, it became Britain's first new energy supplier in two years-a remarkable achievement in a market still recovering from the devastation of 2021, when 28 suppliers collapsed within 12 months, displacing over 4.2 million customers and leaving taxpayers with a £2.7 billion bill.
The company's founders, former Revolut executives Alan Chang and Charles Orr, aren't energy industry veterans. They're fintech entrepreneurs who looked at the carnage and thought: "We can do better." Now backed by over $158 million in venture capital from top-tier investors including Balderton Capital, Lowercarbon Capital, Accel, Lakestar, Ribbit Capital, and even Nik Storonsky's QuantumLight, they've achieved a remarkable $5 billion valuation in just their third year of operation.
By early 2026, Fuse had grown to serve over 200,000 households, achieved $400 million in annual recurring revenue (growing 8x year-on-year), and reached cash flow positive status. But is this genuinely different from the speculative growth stories that collapsed in 2021, or are we watching history repeat itself with better marketing?
To understand whether Fuse Energy represents genuine evolution or another disaster waiting to happen, we need to understand what killed Britain's energy suppliers in 2021.
Between January and December 2021, wholesale gas prices rose by 250%, with a 70% spike in August alone. But external shocks don't fully explain the crisis. Countries across Europe faced the same wholesale price surge, yet the UK saw disproportionate supplier failures.
Most failed suppliers operated on a fundamentally flawed model. They were essentially middlemen-buying energy from the wholesale market and reselling it to customers with minimal infrastructure, inadequate hedging, and business models that only worked when wholesale prices remained stable.
Avro Energy, which served 580,000 customers, epitomised the problem:
This wasn't an energy company. It was a marketing operation with an energy license.
Even Bulb Energy-the seventh-largest UK supplier with 1.7 million customers-collapsed spectacularly. Despite being valued at over £1 billion, Bulb entered special administration in November 2021, requiring £1.7 billion in taxpayer support. They had sophisticated systems, smart people, and rapid growth. It wasn't enough.
Fuse Energy's founders studied this wreckage carefully. Their pitch is that the failures weren't inevitable market forces, but predictable results of poor management and inadequate systems.
$78m seed round led by Balderton Capital and Lakestar
Launch as first new supplier post-crisis, first to market after 28 collapsed
$12m strategic round led by Multicoin Capital
Unicorn status at £750m+ valuation, enters domestic gas market, hits $90m ARR
$70m Series B at $5bn valuation, $400m ARR, 200,000+ customers, cash flow positive
Unlike the minimalist operations that collapsed in 2021, Fuse has built substantial infrastructure. They operate their own trading desk, use sophisticated hedging strategies, and maintain higher capital reserves than regulations require. Their team of 140+ includes engineers from Meta, SpaceX, Tesla, Citadel, and Jump Trading. They're also vertically integrated-owning renewable generation sites (wind and solar), running their own trading platform, and building consumer hardware.
Pricing is where Fuse makes its boldest claims. Here's how their February 2026 tariffs compare to competitors across UK regions:
| Region | Fuse Elec (p/kWh) |
OVO Elec (p/kWh) |
British Gas Elec (p/kWh) |
Fuse Gas (p/kWh) |
|---|---|---|---|---|
| Loading tariff data... | ||||
Indicative rates for comparison. Tariffs update regularly - always verify current pricing before switching.
Based on Ofgem typical consumption: 2,700 kWh electricity, 11,500 kWh gas. Cheapest fixed tariff per supplier, averaged across UK regions.
These figures are indicative and non-binding - tariffs change regularly. But Fuse consistently undercuts major suppliers on electricity and gas. For a typical dual-fuel household:
The £50 per fuel exit fee (£100 total) means you need to stay ~12-15 months to see the full saving, but that's standard for fixed tariffs.
Fuse's competitive pricing raises the obvious question: how are they doing what killed their predecessors?
Setting aside existential risk questions, what's it actually like being a Fuse customer?
Trustpilot reviews (4.7/5 from 3,400+ reviews) consistently praise the responsive chat support-customers report getting help within minutes, even on Sunday mornings at 7:30am. Common complaints: no phone line for emergencies, and you pay variable amounts each month based on actual usage (fixed DD coming soon, according to Fuse).
Despite impressive metrics, there are legitimate concerns:
The 2022 price cap hit £4,279. Fixed tariffs protect you from spikes-but only if your supplier survives.
This is the difficult question. Fuse offers genuine savings and superior digital experience. Their business model shows important differences from 2021 failures. But they're also untested in a true crisis.
If you switch to Fuse, treat it as an active decision requiring monitoring, not "set and forget." Watch for:
If you see these signs, don't wait-start researching alternatives immediately.
Fuse Energy represents the most sophisticated and well-capitalised attempt yet to build a sustainable challenger supplier. Their pricing is competitive (£.../year savings), customer service is genuinely excellent (24/7 chat, 4.7/5 Trustpilot), and their $158m+ backing from tier-1 VCs provides real runway.
The vertically integrated model-owning generation, trading, supply, and soon hardware-is genuinely different from the hollow middlemen that collapsed in 2021. They're not just reselling energy; they're building an energy company.
Our recommendation: If you're on SVT and comfortable with app-based service, Fuse is worth serious consideration. The chat support is better than most phone lines. But stay vigilant-no one has tested whether fintech-style energy companies can survive a true wholesale crisis.
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Sources: Fuse Energy company announcements, Tracxn funding data, Sifted ($70m raise coverage, Dec 2025), EU-Startups, Startupmag.co.uk, Trustpilot reviews (3,400+), Uswitch supplier profiles, Energy-Review.co.uk, SwitchPilot tariff database. Valuation and ARR figures from verified investor reports and company statements.
Disclaimer: This is an independent analysis. We are not affiliated with Fuse Energy. Tariff rates accurate as of February 2026 but subject to change. Always verify current pricing directly before switching.