It’s a common grumble: lured in by a big energy supplier offering a low tariff, you find your bills skyrocketing a year later when the agreement expires and the standard variable rate kicks in. For one couple, David Pike and Karin Sode, the irritation became so great that they decided to start their own energy company. People’s Energy, which started supplying households this week after crowdfunding nearly £500,000, aims to break the dominance of the big six energy suppliers – including British Gas, EDF and E.ON – with a model it says offers customers greater fairness and transparency. While the company will source its energy from the same wholesale market as the established suppliers, Pike and Sode say their offer to consumers is different: customers will automatically get shares in the company, as well as a portion of its earnings – the couple promises to redistribute 75% of profits as an annual rebate. They will also give customers representation on the board of directors and publish key data such as salaries and wholesale energy costs, says Pike, who previously worked as a consultant in the power industry. The standard variable rate will be around £129 cheaper than the big six average, he adds.
Guardian 1st Sept 2017 read more »