A new City Hall backed energy supplier has gone live today with a promise of saving households up to £300 a year.
Operated by Octopus Energy, London Power is promising its 12-month fixed tariff will “typically be within the cheapest 10 per cent of similar tariffs” while its tariff for customers on pre-payment meters is claimed to be “in the top three cheapest pre-payment tariffs in the market.”
At the end of their contract customers will be moved to the cheapest similar plan.
Mayor Sadiq Khan hopes the new service will help reduce energy bills and encourage more London households to change provider. The capital currently has one of the lowest levels of switching and one of the highest levels of pre-payment meter use in the country according to Ofgem statistics.
Mayor Khan said: “It is a disgrace that many Londoners pay too much to heat and light their homes, with more than a million living in fuel poverty.
“London Power is a different kind of energy company. For the first time we have a fair, affordable, green energy company specially designed for Londoners.”
Stuart Jackson, Co-Founder and CFO of Octopus Energy, added: “Octopus Energy has been at the forefront of affordable, fairly priced green energy since our inception four years ago.
“We couldn’t be happier to launch London Power in partnership with the Mayor, to offer Londoners a good deal on planet-friendly power and to reinvest City Hall’s profits into community projects aimed at creating a more carbon neutral city.”