A small North East energy supplier with big ambitions
Breeze Energy Supply Ltd was set up in Newcastle-upon-Tyne in April 2015 by husband-and-wife team Danny and Kelly Hughes. They were later joined by co-founder James Platania. Breeze aimed to be a friendly, family-run alternative to the big energy companies. By the end of 2019, they had around 18,000 customers and a small team of about a dozen staff.
What made Breeze different
- Simple tariffs – they usually offered one fixed-rate dual-fuel deal, instead of the confusing mix of tariffs seen elsewhere.
- Good old-fashioned service – they answered phone calls quickly, usually in under a minute. In fact, they were rated top by Citizens Advice in summer 2019 for customer service, scoring 4.8 out of 5.
- Low running costs – operating from a small office helped them keep prices down, without flashy marketing.
Trouble with the rules
Energy companies have to show they buy or pay for a certain amount of renewable electricity, under something called the Renewables Obligation (RO).
- In 2018–19, Breeze only sourced 8.9% of their electricity from renewables, well below the UK average.
- Ofgem (the energy regulator) told them in October 2019 to pay £486,232.06 to cover their shortfall in renewable energy.
- Breeze didn’t pay this by the 31 October deadline, which meant they broke the rules and risked losing their licence.
What happened when they went bust
- On 18 December 2019, Breeze told Ofgem they could no longer keep trading.
- Their energy licences were officially removed on 22 December 2019.
- Ofgem stepped in and moved all Breeze customers to British Gas. This made sure people still had power and their credit balances were protected. If you’re a British Gas customer, you might be interested in finding out who is a cheaper supplier than them here.
Why did Breeze fail when customers liked them?
| What caused it | Ongoing problems | Business choices |
|---|---|---|
| They didn’t pay their Renewables Obligation bill, which led to their licence being taken away. | Smaller suppliers often sell energy at fixed prices before knowing what it will cost them – so surprise bills can cause real trouble. | They only had one tariff and didn’t build up a mix of different customers. They focused more on customer service than financial planning. |
| They had to buy green certificates to cover their low use of renewable energy, but didn’t have the money set aside. | 2019 was a bad year – nine energy firms failed. Investors became cautious, making it harder to borrow money. | Growing quickly from zero to 18,000 customers meant they had to put down more money with industry bodies, which stretched their cash further. |
What happened to their customers?
- Everyone was moved to British Gas and told to stay put while the transfer happened.
- Customers were free to switch to another supplier if they preferred once everything was set up.
- Ofgem said customers’ credit balances were safe, but some bills (like the £486k renewables bill) might never be fully recovered.
What can we learn from Breeze?
- Good customer service isn’t enough – if you break the rules, you can’t stay in business.
- Money matters – running an energy company needs good financial planning and enough cash to deal with surprise costs.
- Regulations are strict – missing key deadlines, especially for renewables, leaves no room to fix things.
- Customers are protected – even when a firm fails, Ofgem makes sure your lights stay on and your money is safe.
Looking back
Breeze Energy was one of many small companies trying to shake up the energy market. They proved that customers value simple pricing and friendly service – but also showed that behind-the-scenes systems, rules, and finances are just as important. Since then, Ofgem has become stricter about checking that suppliers have enough cash and a proper plan – so we’re less likely to see another Breeze-style collapse in future.
