Utility Warehouse

Telecom Plus, a FTSE 250 company, established Utility Warehouse in 2002{{Cite web|title=Utility Warehouse Limited|url=https://beta.companieshouse.gov.uk/company/04594421|access-date=2020-06-04|website=Companies House}} as a subsidiary and brand to encompass all of their residential energy, telephony and broadband offerings.{{cite news | last =Tieman| first =Ross| title =Company of the Year: Telecom Plus | newspaper =Financial Times| date =13 March 2009 | url =http://www.ft.com/cms/s/0/0fa80214-0f70-11de-ba10-0000779fd2ac.html | access-date = 6 October 2014}} The Utility Warehouse headquarters is in Colindale, North London.{{cite news | last =Stafford| first =Philip| title =Telecom Plus boosted by word-of-mouth support | newspaper =Financial Times| date =29 March 2009 | url =http://www.ft.com/cms/s/0/48771308-1c92-11de-977c-00144feabdc0.html | access-date = 7 October 2014}}

In 2006, UW and Telecom Plus entered into an agreement with npower, under which npower would supply energy (gas and electricity) to UW customers. UW sold its two subsidiaries (Electricity Plus and Gas Plus) to npower. A 2009 article by The Guardian reported that Telecom Plus's rates were generally average, and as much as 20% higher than the best deals.{{cite web |last=Jones |first=Rupert |url=https://www.theguardian.com/money/2019/dec/07/utility-warehouse-is-its-life-changing-scheme-really-ab-fab |title=Utility Warehouse: is its 'life-changing' scheme really ab fab? |date=7 December 2019 |website=The Guardian}}

In 2013, however, npower sold the two former Telecom Plus subsidiaries back to Utility Warehouse for £218 million.{{cite news | last =Chazan| first =Guy| title =Telecom Plus deal to challenge big six UK energy suppliers | newspaper =Financial Times| date =20 November 2013| url =http://www.ft.com/cms/s/0/a5536944-51c3-11e3-8c42-00144feabdc0.html| access-date = 7 October 2014}} As a result, Utility Warehouse became one of the largest independent energy suppliers in the UK. The deal sparked commentary about the possibility of npower's parent company RWE leaving the UK, or the emergence of a "Big Seven" in place of the existing Big Six energy suppliers.{{cite news | last =Gosden| first =Emily | title =Energy challenger Telecom Plus leaps to Big Six's defence | newspaper =The Daily Telegraph| date =20 November 2013 | url =https://www.telegraph.co.uk/finance/newsbysector/energy/10463877/Energy-challenger-Telecom-Plus-leaps-to-Big-Sixs-defence.html | access-date = 6 October 2014}} In 2023, UW reported that it was the seventh largest energy supplier in the UK, supplying around 3% of UK households.{{Cite web |date=30 September 2023 |title=Telecom Plus PLC: Half-Year Results |url=https://www.londonstockexchange.com/news-article/TEP/half-year-results-to-30-september-2023/about:blank |access-date=2023-11-28 |website=London Stock Exchange}}

In 2021, UW agreed to pay £1.5{{Nbsp}}million into Ofgem's redress fund, after an investigation begun by Ofgem in 2018 found that since 2013 the company had not given sufficient support to customers in payment difficulties.{{Cite web|last=Earl|first=Nicholas|date=2021-11-10|title=Utility Warehouse pays £1.5m to Ofgem fund after failing customers in debt|url=https://www.cityam.com/utility-warehouse-pays-1-5m-to-ofgem-fund-after-failing-customers-in-debt/|access-date=2021-12-08|website=City A.M.}}

In 2023, UW had over 360,000 broadband customers and over 420,000 mobile telephony customers.{{Cite web |last=Jackson |first=Mark |date=2023-11-21 |title=Utility Warehouse Top 363,595 UK Broadband Users and Change CEO |url=https://www.ispreview.co.uk/index.php/2023/11/utility-warehouse-top-363595-uk-broadband-users-and-change-ceo.html |access-date=2023-11-28 |website=ISPreview UK}}

The company supplies gas, electricity, broadband, mobile and landline telephony, home insurance and a cashback card.{{cite web |title=UW Cashback Card Challenge Utility Warehouse Cash Back|url=https://www.cashbackcardchallenge.com/ |access-date=2025-03-12}}{{cite web |title=Annual Report 2019 |url=https://find-and-update.company-information.service.gov.uk/company/04594421/filing-history/MzI0OTY0NzA3M2FkaXF6a2N4/document?format=pdf&download=0 |website=Companies House |access-date=2025-03-12 |date=31 March 2019}} Their telephony and energy services are often bundled to reduce costs for customers.

Utility Warehouse employs a multi-level marketing model that utilizes independent distributors to obtain new customers. Distributors introduce both residential and business customers.

Utility Warehouse has no shops and does not advertise on television or in the national press. The company uses word-of-mouth as a primary means of promotion, and offers bonuses to distributors who recruit new customers and distributors.

Distributors gain a commission from their own customers and their distributor's customers, making Telecom Plus a multi-level marketing company. There is a joining cost to become a distributor (reduced if they become, or already are a customer). A 2017 Guardian investigation found that total commission paid to distributors in the previous financial year was £21.1 million, or less than 3% of revenue; if that amount was divided equally among the 41,717 distributors they would each receive £505 per year.{{cite news |last=Jones |first=Rupert |url=https://www.theguardian.com/money/2017/jul/08/get-rich-quick-utility-warehouse-energy-scheme-joanna-lumley |title=Get rich quick? Not with Utility Warehouse |date=2017-07-08 |website=The Guardian |access-date=2025-03-12}} Utility Warehouse responded that the calculation was misleading: "there are many who for whatever reason earn considerably less than £500 per year, and there are those who work at their business extremely hard and earn considerably more than this". In 2019, the average distributor earned £12 a week, prior to taking costs into consideration.

{{reflist}}

• {{Official website}}
• [https://www.which.co.uk/reviews/energy-companies/article/energy-company-reviews/utility-warehouse-arMyL2D8l4qv Utility Warehouse Review] – Which?
• [https://utilitywarehouseforbusiness.co.uk/ Utility Warehouse for Business]

{{Energy in the United Kingdom|companies}}

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Category:Companies established in 2002

Category:Companies based in the London Borough of Barnet

Category:Internet service providers of the United Kingdom

Category:Electric power companies of England