Islington Council energy strategy could cut bills by £200
The Town Hall will sell energy to residents
25 November, 2016 — By Koos Couvée
PLANS to sell residents gas and electricity using the Town Hall’s own tariff were agreed last night (Thursday).
Angel Energy, a partnership between Islington Council and Nottingham City Council-run Robin Hood Energy, will sell energy to residents – a move which the council estimates could shave £200 off the average household’s annual bill.
The council hopes to launch the scheme next year and sign up 6,000 households in the first 12 months. It hopes to convince many of the thousands of tenants using pre-payment meters to join the scheme.
Environment chief Councillor Claudia Webbe said: “It’s notoriously difficult to get people to switch to a cheaper tariff. We’re trying to bring in an Islington tariff that would give residents confidence.
“This way, we can take on the Big Six energy companies who have relied on people’s historic inability to change. It’s all about tackling fuel poverty and bringing down the high number of households on pre-payment meters.”
She added: “Around half of our social tenants are on pre-payment meters and it’s a bit of a scandal. They’re on a higher tariff and get a worse deal.
“This scheme will introduce smart metering so they pay for what they use rather than having to pay over the odds.”
Angel Energy will be what is known as a “white label provider” – an organisation that does not hold a supply licence and instead partners with a licensed supplier to offer gas and electricity using its own brand.
It will be promoted and marketed through “all available channels”, a report before councillors said.
The Town Hall believes the council-branded tariffs would be particularly attractive to elderly and more vulnerable residents.
Labour-run Nottingham set up Robin Hood Energy last year. Employing 30 staff, it was the first local authority-owned energy company run on a not-for-profit basis since the market was nationalised in 1948.
The authority has said it has cut energy bills of some customers from £2,000 to £1,400.
The company uses energy generated from the city’s incinerator, solar panels and waste food plants and buys in gas and electricity on the energy market.