The creators of People’s Energy, an energy supplier that collapsed last year, could reportedly soon receive a £50 million payout.
A Bloomberg investigation has revealed that under the current insolvency rules of the UK energy market, David Pike and Karin Sode might get this sum after company creditors are satisfied.
The company which was described as the UK’s only social enterprise electricity and gas supplier has left behind 350,000 domestic customers, 500 business customers and 450 employees.
British Gas took on customers of the failed supplier.
People’s Energy had a turnover of £500 million in four years, according to figures published on Ms Sode’s LinkedIn profile.
Last week, Ofgem Chief Executive Officer Jonathan Brearley said that the regulator was already looking at closing certain loopholes in current insolvency law which affects the price of hedged gas.
ELN has approached Ofgem for a response – the regulator declined to comment as there are ongoing court cases looking to consider Ofgem and Suppliers of Last Resort as creditors to recover as much as possible from a failing supplier to reduce mutualised costs.