The bosses of bust energy provider People’s Energy Company are in line to receive a more than £50 million payout after the energy company fell into administration.
According to reports, David Pike and his partner Karin Sode held about a quarter of the equity in the energy provider’s holding company.
The remaining equity was owned by a non-profit ‘community interest company’ that promised to pay a majority of the company’s profits back to customers.
The married founders of the failed energy company may be entitled to millions of pounds as part of the insolvency process, once creditors have been paid, and are not expected to be held liable for an estimated £283mln of costs associated with moving the company’s customers to Centrica PLC (LSE:CNA) owned British Gas, according to Bloomberg.
People’s Energy is one of several challenger energy companies, alongside Bulb Energy, to go bust after wholesale gas prices soared last year.
According to a filing with Companies House, Alvarez & Marshal Europe were appointed as administrators for the company in September 2021.
British Gas says on its website that any outstanding debits held by the bust energy provider's 350,000 pre-existing household customers would not be transferred to the company.