The first new UK supplier in two years now serves 200,000+ households with a $5bn valuation. We look at how Fuse is built differently to the suppliers that collapsed in 2021 - and what that means for customers.
When Fuse Energy launched in July 2023, it became Britain's first new energy supplier in two years - a notable moment in a market still recovering from the 2021-22 energy crisis, when 29 suppliers collapsed between July 2021 and May 2022, displacing around 4.2 million customers. Ofgem put the cost of those collapses at £2.7 billion, mostly recouped via a levy on energy bills.
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. The question we wanted to answer: is the underlying business model genuinely different from the suppliers that collapsed in 2021, and does that difference translate into a better deal - and a more reliable one - for customers?
To understand how Fuse Energy compares with the suppliers that came before it, it helps to look at what went wrong during the 2021-22 crisis. The Ofgem state of the market report for 2026 sets out how the regulator now views supplier resilience and consumer outcomes.
Wholesale gas prices roughly tripled across 2021, with the sharpest moves from August onwards. External shocks alone don't fully explain the supplier failures, though - other European markets saw similar wholesale moves without the same wave of supplier collapses, which points back to how UK suppliers were structured.
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 around 1.6 million customers - couldn't survive. Despite being valued at over £1 billion at its peak, Bulb entered Special Administration in November 2021, with the projected taxpayer cost peaking at around £3 billion. They had sophisticated systems, capable people, and rapid growth. It wasn't enough. (The bailout was ultimately recovered after Octopus Energy acquired Bulb's customer book in 2022.)
Fuse Energy's founders studied these failures carefully. Their pitch is that the 2021 collapses weren't inevitable market forces, but predictable results of thin operations and inadequate hedging.
$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. Note that Ofgem's ban on acquisition tariffs - cheap deals offered only to new customers - means any price advantage Fuse shows must now be available to existing customers too. 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). If complaints handling matters to you, see our guide on which energy supplier has the best complaints record.
Despite impressive metrics, there are legitimate concerns:
Ofgem's price cap peaked at £4,279 in Q1 2023, though the government's Energy Price Guarantee kept actual bills at £2,500 for most households. A fixed tariff locks in your unit rates so you're shielded from short-term wholesale spikes - which is exactly when fixed deals matter most.
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.
Switching is a low-cost, low-effort thing in 2026 - the supplier handles the paperwork and your supply isn't interrupted. So whichever supplier you're with, including Fuse, it pays to stay aware of:
If something feels off, it's worth taking ten minutes to compare your options - that applies to any supplier, not just newer ones.
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. For context on how much energy suppliers actually make from customers, see our separate analysis.
Our recommendation: If you're on a Standard Variable (Default) Tariff and comfortable with app-based service, Fuse is worth serious consideration. The chat support is genuinely better than most phone lines, the pricing holds up across regions, and the underlying business model addresses what went wrong in 2021. The next major wholesale shock will be the real test of any new supplier - Fuse included - which is a fair caveat to keep in mind rather than a reason to dismiss what they've built.
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From the team behind SwitchInsights
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Related reading:
Which Energy Supplier Has the Best Complaints Record? →
Do Energy Suppliers Really Make a Fortune from You? →
The Ban on Acquisition Tariffs →
Ofgem State of the Market 2026 →
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.