The cost of energy used by key London agencies – including Transport for London and the Metropolitan Police – could fall after City Hall was given permission to become an electricity supplier.
The Greater London Authority has been awarded a licence to buy and sell electricity, a key step in meeting Mayor Boris Johnson’s ambition to generate 25% of London’s energy requirements within the capital.
A number of London councils produce electricity to warm homes, swimming pools and local buildings but are left with a surplus which they’re forced to sell to large companies at low prices.
Under proposals outlined today, City Hall would buy this excess energy for up to 30 per cent more than boroughs current get. It would then be sold to London’s agencies at cost, reducing their energy bills.
London will be the first public authority in the country to operate such a scheme which is expected to go live by early 2015.
Mayor Johnson said: “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.”