People's energy, worth investing in?

janeyandpaul

Hi, has anyone out there thought about investing in the new energy company (owned by the people)? People's Energy is a revolution in terms of supply energy and supposedly being able to return up to 75% of profits to its customers.
I'd like to know what people's thoughts are on this new business?
Thanks
Paul

phillw

janeyandpaul wrote: »

Hi, has anyone out there thought about investing in the new energy company (owned by the people)? People's Energy is a revolution in terms of supply energy and supposedly being able to return up to 75% of profits to its customers.
I'd like to know what people's thoughts are on this new business?

I've not looked into it, but with anything like this you need read the small print & find out what they mean by profits & what happens about losses. With the way the energy market is going at the moment, there may not be any profits.

teddysmum

'Up to ' covers a whole range of possibilities/probabilities.

footyguy

There's a popular saying in business that 50% of something is better than 100% of nothing.

Perhaps in this case, someone has decided that 25% of something is ok ... especially when they set what the 100% figure is in the first place

I'll continue to consult a comparison site and choose the best deal for me, thanks

Edit: Just looked them up.
They have not even launched yet, and expect people to "invest"
But unlike most inestments, it seems they are going to give shares away later (in 3 yrs) to customers
Haven't looked where the shares are going to be listed ...if they are going to be listed.
I'd be surprised if they are going on the London Stock Market, so selling may be problematic (if indeed such shares are worth anything at all by then)
I remember an ISP tried a similar approach during the dot com bubble years - where are they now???

Btw, I have some magic beans if you are interested in purchasing. I'll list that as a crowdfunder if enough people are :cool:

Edit2: Looks like they are not going for a plc setup, so no market for the shares at all

Edit3: Can't find the name of the company -so cannot check if they even have an energy supply licence yet
Their website is registered to a

UK Sole Trader

A fool and their money...;)


Edit4: Just read the the skills/experience of the person allegedly in charge of their finances.
This includes:

I have a great deal of experience in managing finances for successful startups and large companies.

I am not a traditional bean counter...

and

I can count quite well...

:eek:

I'm out!

phillw

footyguy wrote: »

Edit3: Can't find the name of the company -so cannot check if they even have an energy supply licence yet

They supposedly do:

http://www.express.co.uk/news/uk/802258/Peoples-Energy-Ofgem-license-profits-to-customers

Supposedly it's not "up to 75%" it's 75%

http://www.crowdfunder.co.uk/peoplesenergy

"75% of the profits will be returned to customers in an annual rebate
You won't hear the big six giving the profits away, we will!

Our customers receive free share ownership within 3 years
When customers stay with us 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.

Customers can vote and shape the direction of the company
When major decisions need to be made, customers will have a vote on the direction of the business."

Shares are worthless if you can't sell them, dividends are likely to be low if they are going to be aggressive on price. I'm not sure that ofgem are going to allow another Iresa.

footyguy

phillw wrote: »

They supposedly do:

...

I 'll believe if/when I see it

Here's the list of approved electricity suppliers
https://www.ofgem.gov.uk/system/files/docs/2017/03/electricity_registered_or_service_addresses_new_0.pdf

and here's the list of approved gas suppliers
https://www.ofgem.gov.uk/system/files/docs/2017/03/gas_registered_or_service_addresses_new_0.pdf

Although admittedly Ofgem state these were last updated 22-Mar-2017

ohreally

Heard the chap getting interviewed on radio Scotland yesterday, the premise sounded interesting but unsure whether I'll get onboard at this point.

Will keep an eye on over the coming months.

phillw

footyguy wrote: »

I 'll believe if/when I see it

I can't comment on the accuracy of the news, just that it's been reported that they have a license.

It's an interesting idea, I thought about doing it myself but too much work and I'm too honest to make it financially successful.

ohreally

How are others finding the online signup process, ive given up after several failed attempts?

macman

75% profit return is fairly meaningless if the profits are near to or at zero. Most energy suppliers would do well to make a consistent 5% gross margin.