The People's Energy Company

Eibhan

The People's Energy Company will supply Gas and Electricity with 75% of the profits returned to customers. An article was in the paper recently and I have been considering this as an option in view of all the announcements of price rises and wondered about others views? Thanks in advance.

System

Hi - welcome to the forum. I looked at this a month ago and I confess that I had a few doubts/questions.

Its website states that:

We want you to have ownership of energy company and profits returned to you.

A great concept but ownership also implies potential liabilities. What, for example, happens if the company goes bust owing its creditors £25M? Are all the owners liable to cover this debt?

So, for example a £100 pledge will give you the equivalent of £125 back in free energy, £500 will give you £650 back, and so on. A couple of days ago a generous person pledged £5,000 with a promise of a further £5,000 once we are closer to our deadline, that will give them 16 years of free energy!

I am not entirely sure what this means.. If I support a crowd funding project, such as a new fitness device, and it doesn't sell and the company goes bust, then my investment is lost.

Customers receive free share ownership of the business within 3 years!
When customers stay with Our Energy they are given free shares which they can keep as long as they remain a customer. They can't sell the shares to someone else.

What's the point of owning shares that I cannot sell.

I am not suggesting that there is anything untoward going on here; however, as my Father used to tell me, if you don't understand the offer then walk away. I would really need to look at the small print before making any form of commitment.

I see that they now have 506 supporters and c.125K in crowdfunding. A May start looks to be somewhat ambitious and not really the best time to accrue income imho.

Update:

Various blogs suggest that the start up capital has had to be reduced from £450K to £200K. No free energy until customer numbers exceed 20K. There are 10 days left to reach the £200K figure: it doesn't say what happens then over than 'we may launch another crowdfunding campaign' Future success depends on little customer churn (i.e.; supplier/customer loyalty) with pricing based on wholesale cost plus.

I could find nothing to say what happens if a person pledges, say, a £1000 and leaves after 2 years. I suspect that the money may be forfeited but it is difficult to tell.

The website is full of a lot of modern (unintelligible) business speak such as a couple of key members of the required end-to-end value-chain have pledged to support us on a ‘pay-per-click’ basis rather than seeking payment up-front – this is a significant enabler to getting our proposed business model launched'

lily2

I tried to call twice this week but automated machine informed me that lines were open mon - friday 9-5. I called again just now, Thursday 11 am and have been informed that the office is now closed and to call back at the aforementioned hours.

I received an email on Monday stating that they are open for business and was unable to sign up

Have I been had?

SummerFun

lily2 wrote: »

I tried to call twice this week but automated machine informed me that lines were open mon - friday 9-5. I called again just now, Thursday 11 am and have been informed that the office is now closed and to call back at the aforementioned hours.

I received an email on Monday stating that they are open for business and was unable to sign up

Have I been had?

You'll need top explain more.

How can failing to answer a telephone call to you alone be seen as you having been had? :huh:

Presumably you have lost no money if you have not even applied to join them yet.

lily2

I did I pledged £100

hybernia

Not wishing to appear over cynical, but isn't it the case that most if not all newly arrived companies in the UK energy market have all proven to be, one way or another, not fit to deal with? Time and again, the forum is busy with complaints about non billing, mis billing, non communication, etc etc.

As to "the people's energy company": aside from the fact that anything containing an echo of the unmissed Tony Blair would make me run as far from it as possible, the points that Hengus has kindly taken the trouble to make are persuasive enough: stay away. Far, far away.