Co-op Energy
A United Kingdom energy-supply brand associated with Midcounties Co-operative and focused on renewable and community-linked energy.
Last updated August 25, 2026
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Overview
Co-op Energy is a British energy-supply brand that began trading in 2010 as an alternative to the country's large incumbent electricity and gas suppliers. It is associated with Midcounties Co-operative, the consumer co-operative society behind the Your Co-op family of businesses, and has historically supplied domestic and business customers across Great Britain. Its offer has included electricity, gas, renewable electricity and services connected with smart metering and customer choice over energy sources. The brand's principal point of distinction has been its co-operative ownership model. Customers can become members of the relevant co-operative and participate in the society's governance, including voting and standing for election, subject to the applicable membership rules. This positioning separates Co-op Energy from investor-owned utilities and places ethical sourcing, member participation and community benefit at the centre of its identity. Co-op Energy has also promoted electricity generated from renewable and community-owned sources, presenting itself as an alternative for customers concerned about the environmental and social effects of energy purchasing. Co-op Energy launched during a period when the United Kingdom retail-energy market was dominated by the so-called Big Six suppliers. It expanded through organic customer acquisition and through the transfer or purchase of customer books from other suppliers. In November 2016, it took on the approximately 160,000 customers of failed supplier GB Energy, retaining their existing tariffs and transferring GB Energy staff on their existing terms. In 2018, it announced the acquisition of Flow Energy, which had approximately 130,000 customers. Flow was initially retained as a separate brand with its own tariffs, broadening Midcounties' presence in the retail-energy market. The business also experienced operational difficulties. An upgrade to its online customer-service and billing systems in 2015 generated a substantial backlog and customer complaints. By the end of that year, it was reported as the most complained-about utility supplier on a complaints-per-thousand-customers basis. The company subsequently resolved the principal systems problems and reported paying approximately £1.8 million in customer compensation by the end of 2016. In 2020, Co-operative Energy Limited was scrutinised by Ofgem over delayed payments associated with the Renewables Obligation scheme. The regulatory matter was closed after assurances were provided that the outstanding payment deadline would be met. In August 2019, after mounting losses, Octopus Energy acquired the Co-op Energy brand in a transaction reported at approximately £30 million. Octopus thereafter operated the brand's energy supply, billing and customer-service functions. Midcounties retained a role in customer acquisition and the Co-operative Energy relationship, while the wider portfolio also included the acquired Flow Energy brand. Consequently, Co-op Energy is best understood as a co-operative-branded retail-energy proposition whose operational infrastructure has been supplied by Octopus Energy since 2019, rather than as a fully independent supplier with its own end-to-end systems.
History
Co-op Energy began trading in 2010 as a British co-operative alternative to the large incumbent energy suppliers commonly known as the Big Six. The brand was developed within Midcounties Co-operative and operated from sites in Warwick and Walsall. Its initial proposition combined conventional electricity and gas supply with a stronger emphasis on renewable generation, ethical business practice and the possibility of customer participation through co-operative membership. The brand's membership model was central to its identity. Customers could voluntarily acquire an ownership share in the co-operative and thereby obtain rights associated with membership, including participation in governance, attendance at general and regional meetings, voting, and standing for election to the board where permitted by the society's rules. This made Co-op Energy unusual in the British retail-energy market, where most suppliers were owned by private shareholders rather than by a customer-member society. During its expansion, Co-op Energy developed services intended to give customers greater visibility or control over energy sourcing. In 2014 it launched User Chooser, allowing customers to select where their electricity was sourced. The service was linked to the brand's renewable and community-energy positioning and received the Sustainable Energy Europe Award in 2015. The same period brought operational problems. An upgrade to the online customer-service and billing platform in 2015 caused widespread difficulties and created a large backlog of unresolved cases. Complaint levels rose sharply, and by the end of 2015 the company was reported to have the highest number of complaints per thousand customers among utility companies. The problems were subsequently addressed. By the end of 2016, the company was reported to have paid approximately £1.8 million in compensation to customers affected by the disruption. Co-op Energy also expanded through supplier-rescue and acquisition activity. In November 2016, after GB Energy collapsed, Ofgem selected Co-op Energy to take on approximately 160,000 GB Energy customers following a competitive process. Customers were transferred on their existing tariff terms, and GB Energy employees were to move to Co-op Energy on the same terms. In May 2018, Co-op Energy announced the acquisition of Flow Energy, a supplier with approximately 130,000 customers. Flow continued initially as a separate brand and retained its own tariffs. Financial pressure eventually led to a change in the brand's operating structure. In August 2019, Octopus Energy acquired Co-op Energy after the business experienced increasing losses. The reported transaction value was approximately £30 million. From that point, Octopus handled the practical operation of energy supply, billing and customer service. Midcounties retained responsibility for acquiring new customers and continued to associate the brand with its co-operative proposition. The arrangement made Co-op Energy a branded retail channel supported by Octopus's operational platform. In 2020, Ofgem scrutinized Co-operative Energy Limited over late payments required under the Renewables Obligation scheme. The matter did not proceed to a continuing investigation after the regulator received assurances that the outstanding payment deadline would be met. The brand's later ownership and associated assets formed part of Octopus Energy's customer-supply activities, while the Co-op name continued to signal the historical connection to Midcounties Co-operative and its member-owned business model.
- 2020
Ofgem review over Renewables Obligation payments
[1]Ofgem scrutinizes delayed payments under the Renewables Obligation scheme and closes the matter after receiving compliance assurances.
- 2019
Octopus Energy acquires Co-op Energy
[1]Octopus acquires the brand after increasing losses and begins operating its supply, billing and customer-service functions.
- 2018
Flow Energy acquisition announced
[1]Co-op Energy announces the acquisition of Flow Energy, while initially keeping Flow as a separate brand.
- 2016
GB Energy customer book transferred
[1]Co-op Energy takes on approximately 160,000 customers from collapsed supplier GB Energy through an Ofgem selection process.
- 2016
Customer compensation follows systems problems
[1]The company pays approximately £1.8 million in compensation after resolving the major service and billing issues.
- 2015
User Chooser wins a Sustainable Energy Europe Award
[1]The customer-choice service receives European recognition for its sustainable-energy approach.
- 2015
Billing-system upgrade causes service disruption
[1]An online-service and billing-system upgrade produces a substantial backlog and elevated customer complaints.
- 2014
User Chooser launches
[1]The brand introduces a service that allows customers to choose the source of their electricity.
- 2010
Co-op Energy begins trading
[1]Midcounties Co-operative launches Co-op Energy as a co-operative alternative to the UK's major incumbent energy suppliers.
Products and positioning
A co-operative, ethically oriented energy supplier emphasizing renewable electricity, community energy and member participation.
Energy supply · 2010
Electricity supply
Co-op Energy's core offer has been the supply of electricity to residential and business customers in Great Britain. The brand has emphasized renewable electricity and, through services such as User Chooser, greater customer awareness of the generation sources associated with supply.
Energy supply · 2010
Gas supply
Gas has been offered alongside electricity as part of the brand's dual-fuel and broader household energy proposition. The retail and customer-service functions have been operated by Octopus Energy since August 2019.
Renewable energy
Renewable electricity
Renewable electricity is a central element of Co-op Energy's ethical positioning. The brand has promoted electricity from renewable and community-owned sources and used source-selection tools to give customers a closer connection to the generation behind their supply.
Customer energy service · 2014
User Chooser
User Chooser was introduced in 2014 to let customers choose where their electricity was sourced. It supported Co-op Energy's transparency and community-energy narrative and won a Sustainable Energy Europe Award in 2015.
Energy technology
Smart-meter services
Smart-meter installation and related customer services have formed part of the brand's retail-energy proposition. Available arrangements and operational support have been subject to the systems and service platform operated by Octopus Energy.
Controversies
2015
Customer-service and billing-system failure
A problematic system upgrade generated a large backlog and made Co-op Energy the most complained-about utility company on a complaints-per-thousand-customers measure by the end of 2015. The company later resolved the problems and paid approximately £1.8 million in compensation.
Marketing campaigns
- 2014User Chooser
United Kingdom
Co-op Energy introduced User Chooser to give customers a role in selecting the source of their electricity, reinforcing the brand's renewable and community-energy positioning.
Outcome. The service received the Sustainable Energy Europe Award in 2015.
Brand decisions
2020
Response to Renewables Obligation payment scrutinyOtherBackground
Co-operative Energy Limited failed to make required Renewables Obligation payments on time and came under Ofgem scrutiny.
Action taken
The company provided assurances that the late-payment deadline would be met.
Aftermath
Ofgem closed its investigation after receiving the assurances.
2019
Sale of the Co-op Energy brand to Octopus EnergyM&ABackground
Increasing losses led to a restructuring of the brand's ownership and operating arrangements.
Action taken
Octopus Energy acquired the Co-op Energy brand and assumed responsibility for supply, billing and customer service from August 2019.
Aftermath
Midcounties retained responsibility for acquiring new customers, while Octopus supplied the operational infrastructure behind the brand.
Reported transaction value. Approximately £30 million (August 2019)
2018
Acquisition of Flow EnergyM&ABackground
Midcounties sought to expand its retail-energy presence; Flow Energy had approximately 130,000 customers.
Action taken
Co-op Energy acquired Flow Energy and initially retained it as a separate brand with its own tariffs.
Aftermath
The acquisition broadened the group's energy portfolio before the later operational transition to Octopus Energy.
2016
Takeover of GB Energy customersM&ABackground
GB Energy collapsed, leaving approximately 160,000 customers requiring transfer to another supplier.
Action taken
Co-op Energy accepted the customers through an Ofgem competitive selection process, preserving their existing tariff terms and transferring GB Energy staff on the same terms.
Aftermath
The transaction expanded Co-op Energy's customer base and positioned it as a supplier capable of taking on customers from a failed retailer.
Recent events
Sources3 sources
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