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Future of British Business

Owners of Bust Energy Suppliers Set for Million-Pound Payouts

Every UK household pays for failures while some shareholders benefit.

People’s Energy founders won’t be on the hook for the £283 million cost of shifting their customers to British Gas.

People’s Energy founders won’t be on the hook for the £283 million cost of shifting their customers to British Gas.

Photographer: Yui Mok/PA Images/Getty Images

The owners of some UK energy suppliers that collapsed within the past year are set to walk away with payouts reaching tens of millions of pounds at the same time every household in the country is footing the bill for those failures.

The People’s Energy Company Ltd. came into being with crowdfunded cash and a pledge to tackle fuel poverty in Britain. Four years later, it failed. Even so, founders David Pike and Karin Sode may receive about £50 million once company creditors are satisfied. In addition, they won’t be on the hook for the £283 million cost of shifting their customers to Centrica Plc’s British Gas.