Co-op Energy

Last updated

Co-operative Energy Limited
Company typePrivate subsidiary company of an Industrial and Provident Society
Industry Public utility
Founded2010
ProductsGas and electricity supply
Parent The Midcounties Co-operative
Website energy.yourcoop.coop OOjs UI icon edit-ltr-progressive.svg

Co-op Energy is a membership-owned British energy supply company based in Warwick that began trading in 2010. It sells renewable electricity (some from community-owned sources) and gas to its ethically concerned member owner/customers and is a established large operator, an alternative to the Big Six energy suppliers. Constituting half or more of the Your Co-op Utilities division of its parent society Midcounties Co-operative, Co-op Energy is the only co-operative supplier in the British market, [1] meaning supplied customers can voluntarily acquire an ownership share and thereby receive rights to influence the governance of the business, stand for election and have a say in formulating the products it offers.

Contents

In years where the Co-op Energy business and/or the wider businesses of the society generate a free cash flow sufficient to declare profit, the co-owners also have the right to a fair division of dividends and/or interest on their trade with the business, payable annually.

Since August 2019, energy supply, billing and customer service of Co-op Energy have been operated by Octopus Energy.

History

Co-op Energy launched in 2010 as an alternative to the Big Six energy suppliers. The company has three sites: one office in Warwick and two in Walsall.

In 2012, Co-op Energy was awarded the Which? Positive Change Award, which recognises a company that has made significant changes to give its customers a better deal. [2]

In 2014, User Chooser was launched by Co-op Energy to allow customers to choose where their electricity is sourced from. [3] This service won the EU Sustainable Energy Europe Award in 2015. [4]

A problematic upgrade to its online customer service and billing system in 2015 resulted in numerous problems and a large backlog in dealing with issues. [5] By the end of 2015 it was the most complained about utility company, measured in complaints per thousand customers. [6] By the end of 2016 these issues had been resolved and the company was paying out £1.8 million in compensation to customers. [7]

In 2020, Co-operative Energy Limited came under scrutiny by industry regulator Ofgem after it failed to make payments under the Renewables Obligation scheme. The investigation was closed after Ofgem was given assurances that the late payment deadline would be met. [8]

Acquisitions

In November 2016, Co-op Energy announced that it would take on all 160,000 customers of collapsed firm GB Energy on their existing price tariff. Ofgem said it had chosen Co-op Energy after "a competitive process to get the best deal possible". All GB Energy's staff were to be transferred on the same terms to Co-op Energy. [9]

In May 2018, Co-op Energy announced that it had acquired Flow Energy, which had approximately 130,000 customers at the time. Co-op Energy said that Flow Energy would remain a separate brand within Co-op Energy and keep its own tariffs. [10] By 2024 the brand ownership of the acquired company was part of the portfolio of assets owned by Octopus Energy's Customer Supply arm.

Sale to Octopus Energy

In August 2019, following increasing losses, Octopus Energy paid a reported £30 million to acquire the Co-op Energy brand. [11] Customer accounts would be operated by Octopus, while Midcounties retained responsibility for acquiring new customers. [12] [13]

Membership

Members of Co-op Energy receive a share of the company's profits, and can elect the board of directors and attend the annual general meeting and regional meetings. [14]

See also

Related Research Articles

<span class="mw-page-title-main">Scottish Power</span> British energy company

Scottish Power Limited is a vertically integrated energy company based in Glasgow, Scotland. It is a subsidiary of Spanish utility firm Iberdrola.

<span class="mw-page-title-main">The Phone Co-op</span> UK based co-operative telecoms supplier

The Phone Co-op was an independent consumer co-operative in the United Kingdom. It provided landline, mobile telephone and Internet services, including web hosting and broadband. In April 2018, the Phone Co-op board agreed for its operations to be transferred to the Midcounties Co-operative, with the Phone Co-op legal entity ceasing to exist. The brand continued to be operated until 1 June 2018, when it was rebranded to Your Co-op following the completion of the transfer.

<span class="mw-page-title-main">Office of Gas and Electricity Markets</span> United Kingdom government non-ministerial department

The Office of Gas and Electricity Markets (Ofgem), supporting the Gas and Electricity Markets Authority, is the government regulator for the electricity and downstream natural gas markets in Great Britain. It was formed by the merger of the Office of Electricity Regulation (OFFER) and Office of Gas Supply (Ofgas).

<span class="mw-page-title-main">Midcounties Co-operative</span> British consumer co-operative

The Midcounties Co-operative Limited, trading as Your Co-op, is a consumer co-operative in the United Kingdom with over 700,000 members. Registered in England under the Co-operative and Community Benefit Societies Act 2014, it is a member of Co-operatives UK and Federal Retail Trading Services.

<span class="mw-page-title-main">Good Energy</span>

Good Energy Group PLC is a British energy company based in Chippenham, Wiltshire that provides services in the electrification of transport and decentralised renewable energy generation such as domestic solar panels. The company is also an energy retailer, and built a portfolio of wind and solar generation which was sold in 2022. Founded by Juliet Davenport, its CEO is Nigel Pocklington.

E.ON UK is a British energy company and one of the largest suppliers of energy in the UK, following its acquisition of Npower. It is a subsidiary of E.ON of Germany and one of the Big Six energy suppliers. It was founded in 1989 as Powergen, and was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. It has been a subsidiary of E.ON since 1 July 2002.

<span class="mw-page-title-main">Npower (United Kingdom)</span> UK-based supplier of gas and electricity

Npower Limited is a British supplier of gas and electricity to businesses. It has been a subsidiary of E.ON UK since January 2019. The company was formerly known as Innogy plc and was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index.

<span class="mw-page-title-main">British Gas</span> Energy and home services provider in the United Kingdom

British Gas is an energy and home services provider in the United Kingdom. It is the trading name of British Gas Services Limited and British Gas New Heating Limited, both subsidiaries of Centrica. Serving around twelve million homes in the United Kingdom, British Gas is the biggest energy supplier in the country, and is considered one of the Big Six dominating the gas and electricity market in the United Kingdom. Their lines are open from 8am to 5pm on weekdays, and 9am to 6pm on weekends.

<span class="mw-page-title-main">Green electricity in the United Kingdom</span>

The availability and uptake of green electricity in the United Kingdom has increased in the 21st century. There are a number of suppliers offering green electricity in the United Kingdom. In theory these types of tariffs help to lower carbon dioxide emissions by increasing consumer demand for green electricity and encouraging more renewable energy plant to be built. Since Ofgem's 2014 regulations there are now set criteria defining what can be classified as a green source product. As well as holding sufficient guarantee of origin certificates to cover the electricity sold to consumers, suppliers are also required to show additionality by contributing to wider environmental and low carbon funds.

In the United Kingdom, an electricity supplier is a retailer of electricity. For each supply point the supplier has to pay the various costs of transmission, distribution, meter operation, data collection, tax etc. The supplier then adds in energy costs and the supplier's own charge. Regulation of the charging of customers is covered by the industry regulator Ofgem.

OVO Energy Energy supply company based in Bristol, United Kingdom

OVO Energy is a major energy supplier based in Bristol, England.

Shell Energy Retail Limited was a British consumer gas, electricity and broadband provider. Formerly a subsidiary of Shell, the business was acquired by Octopus Energy in December 2023.

<span class="mw-page-title-main">100Green</span> British sustainable energy company

100Green, operating as Green Energy (UK) Ltd, is a British independent-energy company based in Ware, Hertfordshire. It was established in 2001 by CEO Douglas Stewart. The company provides Ofgem-certified renewable electricity and green gas to a variety of customers, including homes, businesses, and organizations throughout England, Wales, and Scotland. It is currently the only energy supplier in the UK to offer 100% green gas.

The Big Six were the United Kingdom's largest retail suppliers of gas and electricity, who dominated the market following liberalisation in the late 1990s. By 2002, six companies – British Gas, EDF Energy, E.ON, RWE npower, Scottish Power and SSE – had emerged from the 15 former incumbent monopoly suppliers.

<span class="mw-page-title-main">Solarplicity</span> Energy supply company in the United Kingdom

Solarplicity Energy Limited was a renewable energy company based in Hertfordshire, England. In August 2019 the company became the 13th energy supplier to collapse since 2018, affecting around 7,500 domestic and 500 business customers.

<span class="mw-page-title-main">Spark Energy</span> Scottish energy supply company

Spark Energy was an electricity and gas supplier in the United Kingdom, established in 2007 and headquartered in Selkirk, Scottish Borders. Its operating company Spark Energy Supply Ltd entered administration in November 2018, and industry regulator Ofgem appointed OVO Energy to take over Spark Energy's 290,000 customer accounts; OVO continues to run Spark as a separate brand, but is in the process of migrating all its customers to the SSE brand.

<span class="mw-page-title-main">Flow Energy</span> United Kingdom energy company

Flow Energy was an energy supplier in the United Kingdom owned by Co-op Energy. Its headquarters were in Ipswich, Suffolk. The company was launched as a small independent domestic energy supply company in April 2013, supplying gas and electricity to homes throughout the UK. Flow Energy was acquired by Co-op Energy in May 2018, and the Flow brand continued to be used until August 2019 when the customers were acquired by Octopus Energy.

<span class="mw-page-title-main">Robin Hood Energy</span> Not-for-profit energy company (2015–2020)

Robin Hood Energy was a not-for-profit energy company launched in September 2015 by Nottingham City Council as a competitor to the "big six" energy suppliers in the United Kingdom. The company supplied gas and electricity nationally to homes and businesses until September 2020, when its customer accounts were sold to Centrica, the parent company of British Gas.

<span class="mw-page-title-main">Bulb Energy</span> British energy supply company

Bulb Energy Ltd., trading as Bulb, was an energy supply company in the United Kingdom acquired by Octopus Energy in 2022. Founded in 2013, the company attracted venture capital from DST Global and Magnetar Capital and ran at a financial loss while achieving rapid growth in customers. Bulb claimed to provide electricity and gas from renewable or off-set sources. As of November 2021, it had a share of approximately 5-6% of the UK energy market and was considered the seventh largest in the country.

Octopus Energy Group is a British renewable energy group specialising in sustainable energy. It was founded in 2015 with the backing of British fund management company Octopus Group, a British asset management company. Headquartered in London, the company has operations in the United Kingdom, France, Germany, Italy, Spain, Australia, Japan, New Zealand and the United States. Following the acquisition of Shell Energy on 1 December 2023, Octopus Energy is the UK's second largest domestic energy provider.

References

  1. "www.electricityinfo.org". Archived from the original on 23 April 2014.
  2. "Winners of the Which? Awards 2012 are revealed - June - 2012 - Which? News". www.which.co.uk. Retrieved 19 July 2016.
  3. "Co-operative Energy looks to future with User Chooser". Independent.co.uk . 9 July 2014. Retrieved 19 July 2016.
  4. "Co-operative Energy wins European award for empowering customers - Co-operative News". 18 June 2015. Retrieved 19 July 2016.
  5. "Co-op Energy faces customer backlash following bungled system upgrade". Moneysavingexpert.com. 25 March 2015. Retrieved 25 June 2015.
  6. "Co-op Energy: regulator sets sights on the new worst culprit for billing bungles". The Telegraph. Retrieved 27 January 2016.
  7. "Co-op Energy to pay £1.8 million compensation to customers over service". The Evening Express. Archived from the original on 31 October 2016. Retrieved 30 October 2016.
  8. "Co-Operative Energy Limited: Final Order". Ofgem. 30 October 2020. Retrieved 29 March 2024.
  9. "Co-op Energy to take on GB Energy customers". BBC News. 29 November 2016.
  10. "Co-op Energy acquires Flow". Cooperative Energy. 2 May 2018.
  11. Ambrose, Jillian (28 August 2019). "Octopus Energy buys out rival to propel it into the big time". The Guardian. Archived from the original on 28 August 2019. Retrieved 24 February 2021.
  12. Stoker, Liam (29 August 2019). "Octopus Energy and Co-op Energy confirm major 'strategic energy partnership'". Current News. Retrieved 6 September 2019.
  13. "About our partnership with Co-op Energy, including Flow Energy and GB Energy". Octopus Energy. Retrieved 6 September 2019.
  14. "Membership". Co-op Energy. Archived from the original on 12 August 2021. Retrieved 15 September 2021.