London Power, a non-profit renewable energy supplier for the capital, was officially powered on Monday.
The joint venture between the Mayor office’s and green supplier Octopus Energy is offering a 12-month fixed tariff exclusively for the city’s residents.
Mayor Sadiq Khan said the My London tariff would be within the cheapest 10% of comparable tariffs and save the average household £300 a year.
London Power will also offer a tariff for customers with pre-payment meters, which are more prevalent in the capital than average.
London Power is also aiming for transparency. Customers will automatically be rolled onto the cheapest similar tariff when their contract expires, rather than being reverted to an expensive default tariff. Customers can also leave the supplier at any time without facing exit fees.
Profits from London Power will be reinvested in community projects assisting the 12% of Londoners living in fuel poverty and helping the city tackle the climate emergency and reach net-zero emissions.
Mayor Sadiq Khan said: “It is a disgrace that many Londoners pay too much to heat and light their homes, with more than a million living in fuel poverty.
“London Power is a different kind of energy company. For the first time we have a fair, affordable, green energy company specially designed for Londoners.”
Stuart Jackson, co-founder and CFO of Octopus, said the supplier “couldn’t be happier” to launch London Power and to provide Londoners with “a good deal on planet-friendly power.”
Plans for London Power were first announced in September, with an original launch date in December. Since then, more than 1,000 Londoners have registered interest in the supplier.
Nina Skorupska, head of the trade body Renewable Energy Association, welcomed the launch of the new energy supplier. “London Power embodies the future of energy companies in the UK; localised, affordable and 100% renewable," she said.
“The interest already shown demonstrates the growing appetite amongst consumers to feel a personalised connection to their energy, knowing where it comes from and who it is benefitting.”
However, Caroline Russell, leader of the Green Party in the London Assembly, said Khan’s plans didn’t go far enough. She suggested that London Power should have been set up without the involvement of Octopus Energy.
“I’ve argued with him to set up a fully-licensed company – which means wholly owned by London – to get the best benefits for Londoners,” she said.
“The mayor seems cautious that there will be any profits to be reinvested, but a company owned and run by the Mayor would be able to support investment in green technologies and create green jobs.”
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