Fuse Energy Targets Britains Electricity Market with Aggressive Tech Driven Strategy

Alan Chang has built a reputation for disrupting established industries. As one of Revolut’s earliest employees and eventual chief revenue officer, the 32-year-old executive helped transform the fintech startup into Europe’s most valuable company, now worth $75 billion. Having departed Revolut three years ago, Chang has set his sights on the energy sector with Fuse Energy, a venture he co-founded with fellow Revolut alumnus Charles Orr in 2022.

The company’s ambitions are substantial. Fuse Energy recently closed a $70 million funding round that valued the business at $5 billion, a remarkable increase from $1 billion in July. Balderton Capital and Lowercarbon Capital participated in the round, alongside QuantumLight, the personal investment vehicle of Revolut founder Nikolay Storonsky. The valuation has raised considerable interest across the sector, positioning Fuse at half the value of larger competitors Octopus Energy and Centrica’s British Gas, despite serving just 200,000 customers compared to their approximately 7 million each.

Chang characterises the energy industry as significantly more complex than banking yet surprisingly less sophisticated in technological terms. He contends that none of the current market participants possess adequate technology infrastructure, a gap Fuse intends to exploit. The company has tripled its customer base this year by offering tariffs approximately £260 cheaper annually than competitors, according to Uswitch data.

The strategy mirrors Revolut’s approach of entering markets aggressively, undercutting established players on price whilst rapidly developing new products. Fuse aims to integrate itself across the entire energy supply chain, from generation through to customer service, thereby eliminating intermediaries and capturing margins typically lost to middlemen. The company is constructing its own solar farms and battery storage facilities, handling design, planning and construction internally rather than outsourcing to consultants.

Technical sophistication forms a core component of Fuse’s competitive positioning. The company has recruited quantitative analysts from leading banks and trading houses to refine its energy demand forecasting and hedging strategies. Chang claims Fuse models customer data at a more granular level than competitors, enabling superior risk management against price volatility. At its East London warehouse, former Tesla and SpaceX employees are developing apartment-friendly solar panels designed to hang from balconies, representing the company’s hardware manufacturing ambitions.

The operational approach carries distinct echoes of Revolut’s controversial culture. Chang served as one of Storonsky’s key lieutenants during Revolut’s expansion, leading weekly conference calls where managers faced intense scrutiny over weekly performance metrics. The startup became notorious for 12 to 13 hour working days and regular weekend shifts, with Storonsky defending the practice by emphasising output rather than hours worked.

Employee feedback on Glassdoor reveals similar patterns at Fuse Energy. Reviews frequently mention a “toxic grind culture” with reported working weeks of 60 to 80 hours. One reviewer stated that employees lack personal lives, whilst another suggested graduates are treated “more like machines than people”. Positive reviews acknowledge the fast-paced environment and opportunities for ambitious individuals, yet warn that the company operates as a “true meritocracy” with limited tolerance for underperformance.

Chang addresses these criticisms directly, stating that Fuse is not suitable for everyone. He describes the ideal employee as highly intelligent, ambitious and motivated to build products with substantial impact. The management philosophy emphasises direct feedback, both positive and negative, which Chang views as the most efficient learning mechanism. His response reflects language and attitudes characteristic of his former employer.

Competitive dynamics in the British energy market have shifted considerably over the past decade. Traditional suppliers such as British Gas and EDF have ceded market share to newer entrants including Octopus and Ovo Energy. Recent years have witnessed significant price volatility that eliminated numerous smaller suppliers lacking robust financial foundations. Fuse’s recent advertising campaign has directly targeted Octopus Energy with imagery of severed tentacles and the tagline “kill bill”, demonstrating the company’s willingness to engage in provocative marketing.

Chang claims Fuse will achieve profitability within months, citing annualised revenues of $300 million. The company operates as a digital-only supplier, offering customer support via text messaging rather than telephone initially, though Chang emphasises 24/7 availability including holidays. He maintains that cheaper pricing does not necessitate inferior service quality, pointing to a 95 per cent customer satisfaction rate whilst focusing improvement efforts on the remaining 5 per cent.

The December funding round includes plans for international expansion into the United States, Ireland and Spain. Industry observers have expressed scepticism regarding the valuation, particularly given that participating investors were predominantly existing backers. One competitor executive described the company’s claims as “very aggressive, outrageous” and attributed this positioning to “Revolut DNA”. Rock-bottom pricing strategies have historically proven fatal for several small energy suppliers, raising questions about whether Fuse’s technological advantages provide sufficient differentiation.

Chang counters that sustainable competitive advantage ultimately derives from team quality and execution capability. He argues that whilst strategies may appear similar on paper, implementation quality varies substantially between organisations. The company’s approach of scrutinising operational details to identify inefficiencies parallels Revolut’s methodology. Whether this formula translates successfully from financial services to energy supply remains an open question, though Chang’s track record of identifying and capitalising on market opportunities should not be dismissed lightly.