Milestone for new company
People’s Energy receives Ofgem licence
Britain’s newest energy company, run by a husband and wife, has received its Ofgem licence.
People’s Energy is a significant milestone for the ethically-minded energy firm that will give customers 75% of its profits.
The licence means People’s Energy is now legally able to enter the market and start registering customers to be supplied with gas and electricity.
Co-founders, David Pike and Karin Sode were so fed up with the Big Six energy firms and price hikes that they decided to offer British consumers an alternative. They say their company will be more transparent.
People’s Energy will provide free shares to those that remain with the company. Consumers will also have a voice in shaping the company with representation on the board.
Decisions on salaries, accounts and prices will be shared.
The initiative is being backed by a number of senior business people, including former chair of Gleneagles Hotel, Peter Lederer, and former CEO of the Clydesdale and Yorkshire Banks, John Wright.
Mr Pike said: “The vision for People’s Energy is to have over one million customers, all of whom are in control of their gas and electricity and getting a percentage of the company’s profits back.
“Our company is about putting trust back into the market, currently there is very little. We want our customers to know that we have their best interests at heart and that with us they will have a say in how the company is run.”
Ms Sode added: “Energy comes from natural resources that should belong to us all, not private entities. We are absolutely passionate about returning ownership of this natural resource to consumers.”
To date the duo has raised more than £450,000 through crowdfunding from the pledges of 2,000 supporters. People’s Energy will begin providing energy from August.
Mr Pike trained as an engineer and in recent years has provided leadership consultancy to the power generation and network sectors for EDF and Scottish Power. An experienced business leader, he has led multimillion pound organisations from loss to profit.
What is People’s Energy?
In a radical new move, it will put profits and ownership in the hands of UK consumers of gas and electricity.
How will customers own the business?
Customers receive free share ownership of the business within three years. When customers stay with People’s Energy they are given free shares which they can keep as long as they remain a customer. They can’t sell the shares to someone else. People’s Energy wants UK citizens to always own their own energy supply.
How will it be democratic?
Customers will vote and shape the direction of the company. When major decisions need to be made within People’s Energy, customers will have a vote on the direction of the business.
How will it be transparent?
People’s Energy’s directors will share decisions, accounts, our salaries and wholesale energy costs openly. Together, the staff and customers will change the way that resources that naturally belong to the public are distributed among them.