Performance Economy Spotlight #6. Bullfrog Power is transforming Canada’s energy landscape with gainsharing

Eren Koont
by Eren Koont LinkedIn
Aug 17, 2020 2:11:00 PM

Energy is big business. This spotlight features a Canadian company that’s working to change the energy game. As one of the first social enterprises in Canada, Bullfrog Power uses business as a catalyst for social and environmental change. It embraces the principles of the performance economy by adhering to performance, transparency and accountability all while moving the needle on social and environmental outcomes.

Read these spotlights for more Performance Economy inspiration:

  • M32 Connect – Uses a proprietary, machine learning–driven SaaS “platform of platforms” to help digital publishers maximize the revenue they earn from their advertising assets
  • Indigo Ag – Uses data-driven technological innovations to rethink farming from seed to soil to sale

Building a clean future that's fairly priced 

Bullfrog Power emerged on the energy scene in 2005 with a visionary goal: to transform the electricity landscape in Canada — a country that hosts a bounty of natural energy resources, including plentiful water, sun, and wind power sources. That said, it's still relatively dependent on traditional sources of energy, including commercially mined coal, natural gas, and oil. 

Bullfrog Power offers a green energy option. When a consumer or business “bullfrogpowers” their home or workplace, the company “injects” green electricity or green natural gas into the Canadian energy system to match the amount of power or gas the person’s home or business uses. 

It’s a simple equation with a big impact: For every kilowatt-hour (KwH) of electricity used, a KwH from a pollution-free, renewable source is put on the grid on that consumer’s behalf. 

Bullfrog Power's pricing example

Bullfrog-Power-pricing

How the Ordway billing and revenue automation platform can help companies like Bullfrog Power manage gainsharing with customers:

  • Manage automatic recurring billing and subscriptions at scale (in this case energy tiers)
  • Generate unique invoices and statements for each customer with actual types and amounts of energy offset through the Bullfrog Power program
  • Manage differentiated dunning communications for cohorts of customers (individual vs commercial)
  • Automate the generation of revenue schedules based on all customer contracts 

 

Gainsharing with consumers and the environment — an adaptation of performance economy principles

The Bullfrog Power model is a spin on performance pricing that normally results in variable outlays of cash based on value transacted. When people sign on to Bullfrog Power’s program, they lock-in a rate for their energy each month. The performance component of the value transaction is that the consumer of energy is offsetting fossil fuels with cleaner sources of energy. They reduce their personal or business’s carbon footprint by many tonnes per year. In this way, the individual or organization is not only benefiting their consumer stakeholders but the environment as a whole. Within this equation, environmental impact is the performance deliverable. 

You can think of this type of customer relationship as gainsharing (like with LevaData, our Performance Spotlight #3), but a bit different. As a formula for mutual benefit, gainsharing works best when a company maintains a high level of confidence in their ability to deliver against their performance claims.

Since 2005, 10,000+ homes and 1,200+ businesses have been bullfrogpowered. Overall, the Bullfrog Power community has displaced more than 1.3 million tonnes of CO2 from the environment (equivalent to emissions from 150 million gallons of gas). In addition, they’ve:

  • put more than 4.7 million MWh of green electricity on the grid;
  • injected more than 10.7 million GJ of green natural gas on the pipeline;
  • put more than 1.5 million liters of green fuel into the Canadian fuel system; and,
  • supported more than 150 community-based green energy projects across Canada.

The organization has been so successful that they were acquired in 2018 by Spark Power Corp., a leading independent provider of end-to-end electrical services and sustainability solutions across North America. This means that they can expand their customer base, while offering access to more tools to fight climate change and build a smarter and more sustainable energy grid—a definite win-win-win for their organization, the Bullfrog Power community, and the environment alike.

Bullfrog Power is delivering benefits to consumers and the environment alike 

The organization offers performance-driven packages that cover energy consumption for homes, businesses, vehicles, devices and even events. Packages are customizable based on the user’s particular energy consumption habits and offsetting needs. For instance, the inhabitants of a single family, detached home can choose to bullfrogpower their electricity usage (the most popular option), their natural gas or both together for a reduced fee. 

We'd love to hear from you

Interested in getting performance economy principles working for you and your customers? Let’s discuss today!

 

Topics: performance economy

 

Relieve your billing pains

Hear from executives who have been in your shoes

The Ordway blog helps growing businesses understand the best practices around billing and revenue automation.

Topics will include:

  • finance resources for growing businesses
  • spotlights on best practices
  • tips to streamline your billing and revenue processes
 

Eliminate manual workarounds in order-to-revenue

Discover the Ordway platform

If you are ready to strengthen your sales-to-finance process, our experts are here to help.

Request a demo

Subscribe Here

Recent Posts