Boss of British Gas owner Centrica blasts couple behind failed supplier People’s Energy for hanging on to millions in windfall profits
The boss of British Gas owner Centrica last night blasted the couple behind failed supplier People’s Energy for hanging on to millions in windfall profits.
Karin Sode and David Pike oversaw the failure of their energy firm in 2021, which at the time had 350,000 customers. It joined the ranks of about 30 failed suppliers that have left households with a multi-billion pound bill to cover the costs.
People’s Energy, uniquely among those firms, went bust leaving the business with energy contracts potentially worth more than £200million, even after creditors have been paid. The couple have pledged to give 75 per cent to charity – but that leaves an estimated £50million that could remain with them as pure profit despite the firm’s demise, according to reports.
Under fire: Karin Sode and David Pike oversaw the failure of their energy firm in 2021
Market sources said Sode approached Centrica – which took on People’s Energy customers – as part of her attempt to fulfil her pledge. When asked by The Mail on Sunday, Centrica chief executive Chris O’Shea said he insisted she also give away the full £200millionincluding the £50million the coulple is reportedly keeping – but that he was given the cold shoulder.
He said: ‘We would have been willing to work with them to distribute this money to customers who really need it if they had been able to reassure us they hadn’t kept 25 per cent of the money.
‘They didn’t or couldn’t give us this reassurance. Some of these private companies have seen the energy market as a one-way bet to get richer. That is simply wrong – shareholders, not customers, should foot the bill for failure.’
People’s Energy collapsed at the height of the energy crisis when some firms were caught out by the sudden rise in wholesale gas prices.
The couple still stand to benefit as a separate firm owned by them is a creditor that stands to receive most of the profit from its collapse. The cost of bailing out suppliers has been added to household energy bills.
Pike is setting up a new business called Ethibuy.
He and Sode were both contacted for comment.
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