The Mayor of London Sadiq Khan has announced plans for a green energy company, available exclusively to Londoners, with all profits reinvested into community projects to help tackle fuel poverty.
The new company will be called London Power and is a partnership between the Mayor and Octopus Energy, who were chosen after a ‘rigorous’ procurement process by City Hall.
The Mayor hopes the new company will give Londoners fairer energy prices as every year Londoners spend an estimated 3.5bn on gas and electricity household bills.
London Power will offer 12-month fixed tariffs for electricity and gas, which they say will always be within the cheapest 10% of comparable tariffs available in the market. It is estimated that the tariff could save the average London household around 200 a year if they switch.
London has some of the lowest rates of switching between providers in the country, high levels of pre-payment meters usages (PPM),and low levels of energy efficiency measures, smart meters, and solar panels.
It will also be powered by 100% renewable electricity and have no exit fees, unlike most of the major energy suppliers.
To protect customers from unfair price hikes, contracts will roll-over to the cheapest comparable tarriff when they end.
The Mayor of London, Sadiq 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 Londoners 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 wont be switched over to a rip-off tariff when their contract ends.’
Londoners will be able to sign up to London Power from December and can register their interest from today at the following websitewww.mylondonpower.co.uk
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