The founders of a failed energy supplier could share in a payout of more than £50 million, despite its collapse leaving a £283 million bill for consumers.
David Pike and Karen Sode, the couple behind People’s Energy, could be in line for the dividend from administrators thanks to valuable energy contracts the company held at the time it collapsed, Bloomberg reported.
People’s Energy went bust last September with 350,000 customers, one of dozens of suppliers to fail as wholesale energy prices soared. Its customers were transferred to British Gas, which can claim £283 million from all households for the costs it incurred, mostly for buying energy to supply them.
People’s Energy had wholesale energy contracts in place via BP at the time it collapsed that were then sold on behalf of the administrators, bringing in almost £300 million. BP was repaid almost £12 million it was owed but administrators anticipate paying a “material dividend” to creditors. Ofgem is involved in a court case to try to maximise the amount that can be recouped.
Bloomberg estimates suggest that even when creditors are paid off there could be between £144 million and £235 million left to pay shareholders. Pike and Sode own a 25 per cent stake. Sode said that the other 75 per cent would go to fuel poverty causes.