First Utility targets home services growth in 2017

First Utility has set out its strategy to grow through expansion into bundled home services, including broad band, this year.

The UK’s largest independent energy supplier, First Utility told Utility Week it aims to grow this year by launching new “home service” offerings.

The first of these will be the launch of a bundled energy and broad band internet offer which will be officially revealed next month (February).

A company spokesperson explained that the new white label broad band package will use Talk Talk’s existing network, but all billing and branding in customer communications will carry First Utility’s name.

First Utility has conducted a trial run for the broad band offer with a group of existing customers in order to test what appetite there is for bundling energy and internet services. So far the outcomes from this “soft launch” have been “promising”, said the company.

First Utility supplies energy to around 900,000 UK customers and is the largest non-big six supplier in the market.

However, its 2015 financial results showed that despite increasing customer numbers, profits had plunged compared to 2014. Pre-tax profits were £1.7m for the year, an 84 per cent decrease on the previous twelve months.

The dip was blamed on an increase in administrative costs and investments in service capability to match the growth in customer numbers. Financial results for 2016 will be filed in October this year.