Delivering London's Energy Future

Mayor applies for own junior electricity supply licence

25 July 2016

The Mayor, Sadiq Khan, wants to make London a low carbon beacon. To do this he has plans to revive London’s clean energy sector, which includes committing London to an ambitious target of becoming a zero-carbon city by 2050.

As part of this, he is establishing Energy for Londoners, a not-for-profit company providing a comprehensive range of energy services.

Whilst we work on the nuts and bolts of this package of work, we have good news: we have applied for a junior electricity supply licence with Ofgem, who govern and regulate the gas and electricity markets in Great Britain.

This licence, if successful, will allow us to buy excess low carbon electricity generated by London boroughs, public bodies and others. We will sell it to organisations, offering better prices to the generators. To start off with we’re looking to sell energy to Transport for London and may expand this to others, like the Metropolitan Police, the NHS and the private sector.

We are calling this package of work Licence Lite and predict that it could help bring in more than £300 million of investment for 22 new heat and power projects in London. By 2025, it could create £8 billion of investment and around 850 jobs every year. We will update you again in September, when we hear if our application has been successful.

Read more about the Mayor’s plans for a low carbon energy supply and visit the decision page to see our formal advertisement for a licence.