Energy firm promising 75% of profits to customers wins Ofgem licence
A new energy company which aims to give customers control of their gas and electricity 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 so-called Big Six energy firms and continual price hikes.
They want People's Energy to be completely transparent and customer-focused.
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. 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."
The initiative is being backed by a number of senior business people, including former chair of Gleneagles Hotel Peter Lederer and ex-chief executive of the Clydesdale and Yorkshire Banks John Wright.
Ms Sode said : "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."
The duo have raised more than £450,000 by crowdfunding with 2,000 supporters.
People's Energy will start providing energy from the beginning of August.