London mayor Sadiq Khan has announced a new energy company that will provide 100% renewable energy to Londoners, set for launch in December.
‘London Power’ is a partnership between the mayor and Octopus Energy, and will offer Londoners a “fair priced” energy supplier with set 12-month electricity and gas tariffs “which will always be within the cheapest 10% of comparable tariffs” available on the market.
Any profits generated will be ploughed back into community projects to tackle fuel poverty and help the city to reach a net-zero status.
Over a million London residents are deemed to be “energy poor” or vulnerable, the highest number on record, leaving them without proper heating or power.
Khan, noting the estimated £3.5 million on electricity and gas bills every year by residents of the capital, believes they are not getting fair energy prices.
London households are predicted to save in the region on £200 per year by switching to the new supplier.
Mr Khan said: “It is a sad fact that millions of Londoners struggle to pay fuel bills and are subject to inflated rates from major energy companies. My Energy for Londoner's programme has concentrated on tackling fuel poverty, expanding solar energy and retrofitting homes.
“Now I want London Power to give Londoners a better, fairer deal on fuel prices, as well as the knowledge they won’t be switched over to a rip-off tariff when their contract ends.”
Stuart Jackson, Co-founder of Octopus Energy added: “With around 12% of the capital in fuel poverty, never has a vital service like energy been so desperate for a new lease of life in London. We are absolutely thrilled to work with the mayor of London on setting up this pioneering new company to help Londoners pay the right price for their power and to ensure that the energy they use is 100% renewable to boot!
“London Power has the opportunity to turn around a strained system with world-class (and local!) customer service, fairer prices for all and reinvestment of profits into environmental initiatives.”