Boris Johnson has announced plans for the London mayor’s office to become the UK’s latest electricity supplier with an official launch next year of a scheme aimed at lowering bills and bolstering the capital’s energy independence.
London will be the first public authority to receive a “junior” electricity licence from industry regulator Ofgem as part of the plan to produce 25% of the capital’s power from local sources by 2025.
Energy for London, as the scheme is likely to be named, will initially buy power from small-scale generators owned by London boroughs and public bodies and then sell it on to Transport for London and the Metropolitan police. First it must appoint an established power operator to help manage the systems.
“Nurturing a new crop of small, low carbon energy producers across the capital is the key to a more secure, cost-effective and sustainable energy supply for us all. Investing in locally sourced power will help keep Londoners’ fuel bills down and drive innovation, jobs and growth in this city’s burgeoning low carbon sector,” said Johnson.
Twelve boroughs and waste authorities have already been earmarked as having small-scale power generating schemes that could benefit from the expected 30% premium that Energy for London would be able to pay, compared to the private sector market which only deals in the purchase of huge quantities of power.