All 20 staff who faced redundancy when Newcastle supplier Future Energy collapsed last week, citing trading difficulties, have been taken on by small supplier Together Energy – and received a 20 per cent pay increase.
Ofgem revealed this week that Green Star Energy will act as supplier of last resort for the 10,000 customers of Future Energy. Now, as administrators move into Future Energy’s offices, Scottish company Together Energy has stepped in with a last-minute rescue deal to save the jobs of its 20 employees.
As well as the staff, Together Energy has also acquired the office building in Newcastle city centre – it will now head up the company’s north east operations, after its chief executive Paul Richards orchestrated the takeover with Future Energy CEO David Stroud and the administrators.
Richards said: “We believe that by taking on all of the team at Future Energy our business in Scotland can have a new bigger future through expansion into north east of England and Yorkshire.
He told Utility Week that although things had moved quickly, it is all very timely for the progression of Together Energy, which he said now has 45,000 customers: “These guys have a fantastic knowledge of our systems and all the expertise we could want and more.”
He added not only will Together Energy secure the future of all the staff, but they will also pay them all the Living Wage, which represents a 20 per cent increase on their former earnings.
“We have also ensured everyone will get paid their January salary,” he added.
Future Energy was launched by serial entrepreneur Tim Cantle-Jones to take on the big six suppliers and get the people of the north east and Yorkshire better value deals for their energy.
Paul Richards and Geoff Guenther founded Together Energy last year. They raised £325,000 of initial investment between them, with support from a private investor. Richards said they “spotted a gap in the market for an energy supplier that does things differently”.
As to whether he was worried by three smaller suppliers going under in the last year and a half (GB Energy, Brighter World Energy and Future Energy), he said: “Obviously no-one’s immune, and you never know what’s around the corner, but as things stand at the moment, we’ve got a strong outlook.”