Edinburgh-based challenger brand People’s Energy has struck a white label deal with a local authority to create East Lothian Energy.
People’s Energy was launched in 2017 and currently supplies around 180,000 customers. The social enterprise aims to return 75 per cent of its profits back to its customers.
Speaking to Utility Week, chief executive David Pike, who co-founded the company with his wife Karin Sode, said the retailer was in talks with a number of other councils in the UK over similar deals. White label agreements, he said, pose less of a risk than purely council-backed models which rely on taxpayers’ money.
“We are partnering with the council and offering them a discount so that they are able to offer good priced energy but with none of the risk associated with the models that Bristol and Robin Hood Energy have tried”, Pike said.
The agreement announced today (20 August) will offer a special variable and fixed tariff that is discounted from People’s Energy’s regular tariffs and available exclusively to East Lothian residents.
In addition, a small pilot is underway which will see solar PVs installed for those living in social housing. The collaborative venture will be mainly funded by the council.
Speaking about the launch Pike added: “Within East Lothian, it is estimated that almost a quarter of households (22 per cent) are living in fuel poverty, equating to 13,500 homes. With this new affordable tariff for East Lothian residents, we have the potential to reduce the fuel poverty gap in the area quite considerably.
“People’s Energy is a social enterprise that puts people and the planet before profits. We’re delighted to have the opportunity to partner with East Lothian Council to help make a positive change in the same area where People’s Energy first started three years ago.
“This collaboration with East Lothian Council is one of many steps we are taking to help eradicate fuel poverty and we would welcome other local authorities looking to do the same to get in touch.”
Councillor Norman Hampshire, cabinet spokesperson for the environment, East Lothian Council, said: “East Lothian Energy gives county residents the exclusive opportunity to purchase affordable, sustainable and fair energy. We hope this will be attractive to householders across a mix of tenures – including tenants and homeowners.
“As well as saving money and helping to reduce fuel poverty, East Lothian Energy is a great way of enabling customers to support the environment and tackling climate change – a key priority for us as a council. That is because all of the electricity comes from 100 per cent renewable sources.
“East Lothian Energy customers will receive automatic People’s Energy membership – with 75 per cent of their profits being paid back to domestic members through an annual rebate.”
Earlier this month People’s Energy announced it was creating 100 new jobs in Selkirk after taking over the recently vacated Ovo Energy offices in the town.
The co-founders said they spotted an opportunity when Ovo closed its Ettrick Riverside building in May. The office was previously the workplace for 400 employees of Spark Energy which was acquired by Ovo Energy in 2018. Ovo took over its customer base separately through the supplier of last resort process.