Modelling by Landman Economics for Switched on London has revealed that a London-run public energy company would be able to set its base tariff at £970 for the average customer. According to Ofgem this represents a saving of £159 off the average dual fuel tariff, which clocks in at £1129.
Yet insiders fear that Sadiq will break his manifesto pledge and shelve the scheme, or go with a so-called ‘white label’, rather than creating a company with its own energy supply license.
Emma Hughes, Switched on London, said
“It will be a huge disappointment to Londoners if Sadiq has retreated from his commitment to give London a not-for-profit supply company. Why leave Londoners with a half baked white label scheme which doesn’t deliver the lower bills and increased investment we urgently need? London needs its own energy company to create jobs in the capital, tackle fuel poverty, and invest in renewable energy.”
The Mayor is expected to announce Energy for Londoners plans in August. To date the GLA has been conducting a feasibility study into establishing the energy company. The results of the study were due to be released in April and are now three months behind schedule.
Nottingham and Bristol councils have already set up fully licensed companies and the new mayor of Greater Manchester, Andy Burnham, has pledged to set up a company there. Nottingham’s company, Robin Hood Energy, pushed down prices the average household bill in East Midlands by £78.
Emma Hughes added
“The alternative plan under consideration by City Hall, a “white label” scheme, would mean energy is supplied by another energy company using “Energy for Londoners” branding. London’s involvement in decisions about where energy comes from, how much it costs and what happens to any revenues made would be limited, and no jobs would be created in London.”
Landman Economics found that a fully licensed energy company for London could set its base tariff of £970 a year, returning £186 million over 10 years. These earnings could be reinvested in community energy schemes, energy efficiency measures for warmer homes, and in building London’s low carbon transition expertise.
Ali Mussell, Fuel Poverty Action, said
“This research shows that a not for profit energy supply company will dramatically reduce bills. It’s the greed of the Big 6 that is keeping our bills high. Instead of funding corporate profits Energy for Londoners could put money towards local renewable projects and energy efficiency measures, which will help bring bills down even further.”
Contact: Emma Hughes 07801140192, Anna Galkina 07942044472
1 Switched On (http://switchedonlondon.org.uk/) is a movement calling for publicly controlled energy that is green, affordable and controlled by us. More information on the financial modelling conducted by Landman Economics can be found in the briefing ‘Delivering Energy for Londoners’ at http://switchedonlondon.org.uk/wp-content/uploads/2017/07/delivering-energy-for-londoners.pdf