Fuse Energy
UK energy retailer selling cheaper power and gas through in-house software and its own generation assets.
On the record
Checkpoint: Audited FY2025 statutory accounts due, which will confirm or contradict the claimed group-level EBITDA-positive status
The call
Fuse is growing fast on cheap software and a claimed AI cost edge, but unaudited profit claims and a much bigger Octopus Energy leave its position unproven.
Fuse Energy sells electricity to over 300,000 UK customers and claims it does so cheaper than competitors by using custom software and artificial intelligence. However, the company says it saves 17 percent on costs compared to rivals, but this number has not been checked by outside auditors, and other energy companies already use similar automation tools. The real question is whether Fuse is actually making money: the company says it turned profitable in late 2025, but reporting from others found one of its subsidiaries operating at a negative 48 percent margin, which suggests the company may still be burning through investor cash to keep prices low and grab customers from Octopus Energy, the larger tech-focused competitor that could easily copy Fuse's methods if it wanted to.
Why
01
AI pressure: Octopus Energy's Kraken platform. Kraken already automates billing and service at huge scale, undercutting Fuse's claim that its own AI gives it a cost edge. Could AI do the core job? Only partly.
02
Bigger players: Octopus Energy. Octopus is roughly double Fuse's valuation with 35x more customers and can match Fuse's prices or tech at any time. Could a giant copy it? Yes, easily.
03
What protects it. An Ofgem supply license, owned generation assets, and fast customer growth that gives it scale before rivals react.
What would change this call
Fuse's audited FY2025 statutory accounts are published (expected H2 2026). Shows whether claimed EBITDA-positive status is real or the -48% subsidiary margin reflects group-wide losses.
Octopus Energy launches a discount sub-brand or matches Fuse's pricing within 12 months. Would show the incumbent can erase Fuse's price gap, squeezing its main lever for gaining customers.
Fuse's delayed US, Ireland or Spain launch either relaunches or is further postponed. Tests whether Fuse's growth model works outside the UK or is UK-specific.
Octopus Energy launches a discount sub-brand or matches Fuse's pricing within 12 months. Would show the incumbent can erase Fuse's price gap, squeezing its main lever for gaining customers.
Fuse's delayed US, Ireland or Spain launch either relaunches or is further postponed. Tests whether Fuse's growth model works outside the UK or is UK-specific.
Key numbers
- 300,000+ customers
- $550M+ ARR run-rate
- -48% operating margin at one UK subsidiary
Named risks
- Unaudited group profitability claims contradicted by -48% margin at one subsidiary.
- Commodity UK energy retail market with near-zero switching costs and history of supplier collapses (e.g. Bulb).
- Workplace culture allegations of 100-hour weeks and public shaming reported January 2026.
- Delayed US expansion undercuts growth narrative behind $5B valuation.
- UK Ofgem redress reforms effective 2027 could raise compliance costs sector-wide.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Octopus Energy | contesting | Fuse CEO ran public ad campaign against Octopus, which has ~35x more customers, Dec 2025 |
| Centrica (British Gas) | contesting | Fuse valued at ~half of Centrica despite 35x fewer customers, Dec 2025 |
| OVO Energy | contesting | Named as major UK incumbent rival in June 2026 coverage of Fuse's growth |
Questions people ask
- Is Fuse Energy profitable in 2026?
- Fuse Energy claims it has been monthly EBITDA-positive at group level since December 2025, but this is self-reported and unaudited. Sifted's investigative reporting in February 2026 found one UK subsidiary running roughly a -48% operating margin, directly contradicting the profitability narrative.
- Who owns Fuse Energy?
- Fuse Energy is privately held, founded in 2022 by ex-Revolut executives Alan Chang (CEO) and Charles Orr. It is backed by Balderton Capital, Lowercarbon Capital, Accel and Revolut founder Nikolay Storonsky's QuantumLight, reaching a ~$5B valuation after a $70M Series B in December 2025.
- Could AI replace Fuse Energy's business?
- No. Fuse owns physical solar and wind assets plus an Ofgem supply license, which anchor the business against pure software disruption. The company says proprietary AI automates back-office work and cuts opex by about 17% versus rivals, a self-reported claim as of June 2026.
- Who is Fuse Energy's biggest competitor?
- Octopus Energy, explicitly named by CEO Alan Chang as the main rival, including a public ad campaign against it. Octopus has roughly 35 times more customers and its own licensed Kraken software platform, as noted in December 2025 reporting.
- How much money has Fuse Energy raised?
- Around $250M total as of June 2026, including a $78M 2022 seed round, a $70M Series B in December 2025 that pushed valuation to about $5B, and a further ~$30M extension from 20VC and Collaborative Fund in mid-2026.
- Is Fuse Energy expanding to the US?
- Plans for Ireland, Spain and US expansion were announced in December 2025, but Sifted reported in February 2026 that the US launch had been delayed, raising questions about execution pace behind the company's $5B valuation.
Timeline
- 2026-06-15CEO Alan Chang blames UK planning-permission bottlenecks for slowing growth
- 2026-06-05Reports $550M+ ARR run-rate; Q1 2026 turnover £123M near matching FY2025 £131.8M
- 2026-05Acquires 20MW solar park in Wales, powering about 6,000 homes
- 2026-02-02Sifted reports -48% operating margin at UK subsidiary and delayed US launch
- 2026-01-09Observer reports allegations of 100-hour workweeks and staff mistreatment, denied by Fuse
- 2025-12-17$70M Series B led by Balderton and Lowercarbon lifts valuation to ~$5B
- 2025-09Netley Central solar farm (~4MW) goes live near Southampton
- 2022Founded by Alan Chang and Charles Orr; raises $78M seed round
Revision history
29 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Fuse Energy (2026-05-13)
- Fuse Energy raises $70m backed by Balderton and Lowercarbon Capital (2025-12-17)
- Fuse Energy hits profitability with $550M revenue run rate as it challenges Britain's energy giants (2026-06-05)
- electricity info (2026-06-04)
- Revolut alums' Fuse Energy hits $5B valuation to reshape power market (2025-11-24)
- Operating losses and a delayed US launch raise questions for $5bn Fuse Energy (2026-02-02)
- electricity info (2025-12-30)
- Fuse Energy hits $5bn valuation in its third year (2026-02-05)
- Fuse boss attacks planning rules as a 'self-imposed bottleneck for growth' (2026-06-15)
- Founded by former Revolut executives, Britain's Fuse Energy secures €59 million to scale energy operations (2025-12-18)
- 'They milk them to the max': Fuse Energy accused of mistreating staff (2026-01-09)
- What is Brief History of Fuse Energy Company? (2026-03-15)