Co-op Energy
From Wikipedia the free encyclopedia
 | |
| Company type | Private subsidiary company of an Industrial and Provident Society |
|---|---|
| Industry | Public utility |
| Founded | 2010 |
| Products | Gas and electricity supply |
| Parent | The Midcounties Co-operative |
| Website | energy |
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 an 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.
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
[edit]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
[edit]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
[edit]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
[edit]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
[edit]References
[edit]- ^ "www.electricityinfo.org". Archived from the original on 23 April 2014.
- ^ "Winners of the Which? Awards 2012 are revealed - June - 2012 - Which? News". www.which.co.uk. Retrieved 19 July 2016.
- ^ "Co-operative Energy looks to future with User Chooser". Independent.co.uk. 9 July 2014. Retrieved 19 July 2016.
- ^ "Co-operative Energy wins European award for empowering customers - Co-operative News". 18 June 2015. Retrieved 19 July 2016.
- ^ "Co-op Energy faces customer backlash following bungled system upgrade". Moneysavingexpert.com. 25 March 2015. Retrieved 25 June 2015.
- ^ "Co-op Energy: regulator sets sights on the new worst culprit for billing bungles". The Telegraph. 11 November 2015. Retrieved 27 January 2016.
- ^ "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.
- ^ "Co-Operative Energy Limited: Final Order". Ofgem. 30 October 2020. Retrieved 29 March 2024.
- ^ "Co-op Energy to take on GB Energy customers". BBC News. 29 November 2016.
- ^ "Co-op Energy acquires Flow". Cooperative Energy. 2 May 2018.
- ^ 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.
- ^ Stoker, Liam (29 August 2019). "Octopus Energy and Co-op Energy confirm major 'strategic energy partnership'". Current News. Retrieved 6 September 2019.
- ^ "About our partnership with Co-op Energy, including Flow Energy and GB Energy". Octopus Energy. Retrieved 6 September 2019.
- ^ "Membership". Co-op Energy. Archived from the original on 12 August 2021. Retrieved 15 September 2021.
