UK energy supplier, Octopus Energy, has partnered with London mayor Sadiq Khan to establish a new green energy provider for the capital.

London Power will provide electricity generated from 100 per cent renewable sources and is scheduled to launch in December 2019.

Wider energy programme

The partnership is part of the mayor’s wider Energy for Londoners programme, which aims to make London’s homes warm, healthy and affordable, its workplaces more energy efficient, and to supply the capital with more local clean energy.

Every year Londoners spend an estimated £3.5bn on gas and electricity household bills and according to Khan it will give them a “better, fairer deal on fuel prices”.

London also 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.

According to the energy regulator (Ofgem) around 54 per cent of customers have been on higher-rate standard variable tariffs for at least three years and are therefore likely to be paying hundreds of pounds too much for their electricity and gas.

“The launch of London Power demonstrates a milestone in London’s journey towards a net zero carbon city”

Any profits made by City Hall will be reinvested into community projects to help tackle fuel poverty and make London a zero-carbon city. Octopus Energy was chosen following a ‘rigorous’ open procurement process conducted by City Hall and Transport for London.

London Power aims to offer consumers competitive prices including:

• A competitively priced 12-month fixed tariff for electricity and gas, which will always be within the cheapest 10 per cent 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
• No exit fees (unlike most large suppliers)
• A roll-over onto the cheapest comparable tariff available from our supplier at the time a customer’s contract ends. This means customers will not be moved onto an expensive variable tariff at the end of their contract (as is industry practice) and instead will remain on the cheapest tariff once their contract has expired, protecting them from unfair price hikes.

“The launch of London Power demonstrates a milestone in London’s journey towards a net zero carbon city by providing consumers with the option to become socially responsible in their energy choices whilst economically benefitting themselves and their community,” said Dr Nina Skorupska, chief executive of the Renewable Energy Association.

“As public concern about climate change and fuel poverty levels are both on the rise, it’s excellent seeing London Power make the link and choose to both reinvest City Hall’s profits and appoint a 100 per cent renewable power provider as part of the solution.”

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