Khan promises ‘fairer deal’ as new energy firm launches
Mayor Sadiq Khan today promised Londoners a “fairer deal” on their energy bills as he announced the creation of a new power company.
London Power, a non-profit energy company, will launch this December and provide its customers with renewable gas and electricity.
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It is a collaboration with challenger supplier Octopus, which recently bought rival Co-op Energy.
“It is a sad fact that millions of Londoners struggle to pay fuel bills and are subject to inflated rates from major energy companies,” Khan said.
According to regulator Ofgem, around 54 per cent of of customers have been on their supplier’s default tariff for the last three years. Default rates are generally more expensive, sometimes by hundreds of pounds a year.
And Londoners are less likely to switch than those elsewhere in the country.
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The mayor’s initiative follows others in Bristol and Nottingham where cities have set up their own non-profit energy firms.
“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,” said Stuart Jackson, the co-founder of Octopus.