Scottish firm fails
People’s Energy latest challenger firm to collapse
Former rugby player Gareth Thomas featured in a People’s Energy television advert
Scottish power company People’s Energy and Dorset-based Utility Point have collapsed, affecting 570,000 gas and electricity customers.
Industry regulator Ofgem announced this afternoon that the companies are ceasing to trade.
People’s Energy, a community-owned gas and electricity provider, employs 450 across the UK, including 200 in Shawfair south of Edinburgh and in Musselburgh.
Last year it created 100 jobs in Selkirk where 400 were lost when another challenger company Ovo Energy pulled out shortly after acquiring the retail business of SSE (formerly Scottish & Southern Energy).
South of Scotland Enterprise chairman Professor Russel Griggs, described the expansion into the Borders as “fantastic news for the community”.
Launched by married couple Karin Sode and David Pike in 2017, its mission was to eradicate fuel poverty by providing the cheapest possible energy via a social enterprise that would return 75% of profits to its members.
Founders: David Pike and Karin Sode
That year it raised £487,815 from 2,059 supporters in 199 days. The company received its Ofgem licence and began trading in August 2017.
Last year it also teamed up with East Lothian Council to create East Lothian Energy.
In a statement today the directors said: “We are truly saddened that People’s Energy has had to cease trading.
“We want to thank everyone who has supported the company’s mission to provide fair energy for all and support those in fuel poverty, and we also want to say a heartfelt thank you to our excellent team for all their hard work.
“We are sorry about any disruption or inconvenience caused for our members.”