AN ENERGY company created by an East Lothian couple has folded.

People’s Energy has announced that it has ceased trading, affecting about 350,000 homes and 1,000 businesses.

Customers are being told by ofgem, the energy regulator, to not worry and that their energy supply will continue as normal.

Advice Direct Scotland also told company users to not panic, confirming that energy supplies will continue and customers will not lose any money owed to them.

Ofgem will switch all affected customers to a new supplier. People are being advised to not switch themselves and instead wait until a new one is appointed, having a meter reading ready for when their new supplier contacts them.

A statement on People’s Energy’s website reads: “We are saddened to inform you that People’s Energy is ceasing to trade.

“Please rest assured that your energy supply is secure and all account credit balances are protected for our domestic customers. This includes any recent top-ups that were made as part of the seasonal weighting initiative.

“Ofgem, the energy regulator, will be appointing a new supplier for all our customers. Their advice is not to switch, but to wait until they appoint a new supplier. This will reduce any risk of disruption in supply and facilitate the transfer of, and access to, domestic customers’ credit balances.”

The business was launched in August 2017 by David Pike and Karin Sode from Gullane. It was first based in Musselburgh but then expanded its headquarters to Shawfair in Midlothian, hvaing premises in both towns.

It employs about 450 people, with staff said to be told about the closure today (Tuesday).

Just last year the company struck a deal with East Lothian Council to help county residents save money, launching East Lothian Energy.

The initiative aimed to offer affordable, sustainable and fair energy for residents throughout the county as part of a joint commitment to eradicate fuel poverty. A special variable and fixed tariff that was discounted from its regular tariffs was available exclusively to East Lothian residents.

An East Lothian Council spokesperson said: “The announcement that People’s Energy will cease trading is a disappointing development. We appreciate this news will be concerning for customers and its employees.

“Through the East Lothian Energy initiative, a range of affordable energy tariffs were available for East Lothian residents.

“We have been in contact with People’s Energy senior management and have received assurance that customers’ energy supply is secure and all account credit balances are protected for its domestic customers. This includes any recent top-ups that were made as part of the seasonal weighting initiative.

“It has been explained that Ofgem, the energy regulator, will be appointing a new supplier for all East Lothian Energy customers. Their advice is not to switch, but to wait until they appoint a new supplier. This will reduce any risk of disruption in supply and facilitate the transfer of, and access to, domestic customers’ credit balances.

“Ofgem also has information on its website which may be helpful and useful to customers.”

“We will continue to monitor the situation as a matter of priority.”

Another supplier Utility Point is also closing, affecting about 220,000 customers.

A spokesperson for Advice Direct Scotland said: “Anyone in Scotland with concerns about the collapse of People’s Energy and Utility Point can contact energyadvice.scot for free, impartial and practical advice by visiting www.energyadvice.scot or calling 0808 196 8660.”