The Mayor has launched a City Hall-owned energy company, which he says can save Londoners up to £300 a year if they switch to it and will help the capital move towards becoming a “zero carbon city” by 2050.
The company, named London Power, has been formed in partnership with energy supplier Octopus Energy, which specialises in green energy and will provide customer services.
Forming part of the Mayor’s Energy for Londoners programme, the plan for London Power was announced last September and City Hall says “just over 1,000 Londoners have already registered their interest” in switching to it.
City Hall says “the objectives of London Power are to keep energy bills low rather than make a profit,” and that all electricity supplied will be generated from “100 per cent renewable sources” such as the sun, wind and water. Any profits eventually made will go into “community projects helping Londoners living in fuel poverty”.
Khan’s 2016 manifesto pledged to create a not-for-profit company “providing a comprehensive range of energy services to help Londoners generate more low carbon energy and increase their energy efficiency” and to explore “the business case for potential savings on bills by bulk-buying energy”.
Energy for Londoners initiatives also include £2.5 million of grant funding for insulation, financial support for fuel poverty advice services in Islington, Croydon, Kingston and Lewisham and the continuation of the RE:NEW energy efficiency programme set up in 2009 under the mayoralty of Boris Johnson.
Government regulator Ofgem’s 2019 state of energy report found that London has a low level of energy supplier switching and a high incidence of pre-payment meters, which tend to lead to higher bills.
The Mayor himself has already switched to London Power, and others wishing to do the same can do so via the London Power website.
Photograph: Housing in Paddington by Omar Jan.
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