New company will challenge the ‘Big six’

75% of profits will go back to customers

A new energy company which aims to give customers control has received its Ofgem licence.

People’s Energy, based in East Lothian, will give customers 75% of its profits and provide free shares to those that remain with the company.

Securing the Ofgem licence means the company 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 said they decided to establish the business as they were tired of the socalled Big Six energy firms and continual price hikes across the board.

They want People’s Energy to be completely transparent and customerfocused.

The company said customers will have a voice in shaping the firm with representation on the board, while information about salaries, accounts and prices will all be shared.

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.”

The initiative is being backed by a number of senior business people, including former chairman of Gleneagles Hotel Peter Lederer and exchief executive of the Clydesdale and Yorkshire Banks John Wright.

People’s Energy will start providing energy from the beginning of August.

For years there have been gripes over the operation of the UK energy market.

Allegations that the market is effectively “rigged” by the Big Six have prompted significant concern – and attracted the attention of Ofgem.

For years, it seemed operators merely took it in turns to be the first to increase prices, with the others following in their footsteps with alarming haste.

The answer, we were told, was to switch suppliers. However, for many consumers that has proved to be easier said than done.

A few smaller organisations have entered the market in recent years, providing a modicum of much-needed competition.

The latest player – People’s Energy – received its Ofgem licence yesterday. It could prove to be a significant breakthrough. The firm promises to give customers “control” of their gas and electricity supplies, with up to 75% of profits being returned to consumers and free shares to reward loyalty.

Based in Scotland, the company’s founders insist they were spurred into action following years of frustration with the actions of the Big Six.

They claim to have put transparency at the heart of all they do.

It is an encouraging start and has the potential to revolutionise the market.