A new energy company offering low-cost green power exclusively for Londoners will launch in December, the Mayor has announced.
London Power will guarantee tariffs in the cheapest 10% of the market – and will not move customers to a pricier plan after the first 12 months. The company will also offer 100% renewable electricity, though its gas will not be from green sources.
Cheap power is a major problem for London. More than one million people in the Capital live in fuel poverty, with the city spending £3.5billion a year on energy bills.
The Mayor said his new company would offer a fairer deal for residents and the environment.
He 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 won’t be switched over to a rip–off tariff when their contract ends.”
Almost six million people across the country switched energy provider last year, a new record as prices continue to rise – but Londoners are less likely to have made a change.