Mayor launches ‘London Power’
- Londoners can switch to landmark new service from today at mylondonpower.com
- Average household could save around £300 a year by switching to London Power
- Energy prices will be always be fair, with electricity generated from 100 per cent renewable sources
- Any profit City Hall makes will be reinvested into London’s communities
The Mayor of London, Sadiq Khan, today launched his landmark fair-priced, green energy company, available exclusively to Londoners to cut fuel bills and help make the capital a zero-carbon city.
Every year Londoners spend an estimated £3.5bn on gas and electricity household bills, and Sadiq wants to ensure that they can get fair energy prices. According to the energy regulator, Ofgem, London has the one of the lowest levels of switching energy supplier and one of the highest levels of pre-payment meters in the UK, leading to higher prices and less access to good deals.
Currently, the average household paying by direct debit could save around £300 a year* by switching to London Power, and the average pre-payment customer could save £160.**
Just over 1,000 Londoners have already registered their interest with ‘London Power’, a first of its kind initiative for the capital. With the first customers – including Sadiq – switching over today. Londoners can switch in two minutes at www.mylondonpower.com
More than one in 10 London households – more than a million people – are living in fuel poverty, the highest number since records began. Newham has the highest level of fuel poverty in England and six other London boroughs (Brent, Waltham Forest, Haringey, Redbridge, Ealing and Harrow) are in the worst 10 per cent.
London Power will offer fairer prices to all Londoners, helping struggling households - particularly those in fuel poverty - by including:
- A competitively priced 12-month fixed tariff – my london fixed yearly plan - which will typically be within the cheapest 10 per cent of similar tariffs available in the market. It is estimated that the plan could save the average London household around £300 a year if they switch*;
- For pre-payment customers, the my london top-up plan will always be cheaper than the price cap. Today this is in the top three cheapest pre-payment tariffs in the market, at 14 per cent below the price cap;
- No exit fees for either plan, unlike most large suppliers;
- A roll-over onto the cheapest similar tariff at the time a customer’s contract ends. This means customers will not be moved onto an expensive variable tariff at the end of their contract, as is industry practice, and instead will remain on the cheapest similar plan
-once their contract has expired, protecting them from unfair price hikes.
Any profits that City Hall makes will be reinvested into community projects helping Londoners living in fuel poverty, working to tackle the climate emergency and striving to achieve the Mayor’s ambitious target of making London a zero-carbon city. The electricity will be generated from 100 per cent renewable sources, such as the sun, wind and water.
London Power is a landmark partnership between the Mayor and Octopus Energy, the only ‘Which?’ recommended energy supplier in the UK, who will provide their customer service expertise. The partnership is part of the Mayor’s Energy for Londoners programme, which aims to make London’s homes warm, healthy and affordable, its workplaces more energy efficient, and to supply the capital with more local clean energy.
The Mayor of London, Sadiq 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. That’s why I’ve launched London Power – to give all Londoners access to a better, fairer deal safe in the knowledge that they won’t be automatically switched to a rip-off tariff when their contract ends.
“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, said: "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."
Nina Skorupska, CEO of Renewable Energy Association, said: “London Power embodies the future of energy companies in the UK; localised, affordable and 100% renewable. The interest already shown demonstrates the growing appetite amongst consumers to feel a personalised connection to their energy, knowing where it comes from and who it is benefitting. By adopting this model, City Hall has shown themselves to be one of the pioneers in the move towards a Net Zero UK.”
Adam Scorer, CEO National Energy Action: “We need to use every opportunity to combat fuel poverty in London. It’s great to see another important development in the Mayor’s fuel poverty strategy.”
Notes to editors
*Refers to dual fuel households, compared to the average big six standard rate. London Power savings are based on publicly available standard variable tariffs from Big 6 suppliers (E.ON, SSE, NPower, British Gas, Scottish Power, and EDF) for a dual fuel medium usage as defined by Ofgem on a standard meter, averaged across the London, South Eastern England, Eastern England and Southern England regions. The average saving is correct as of 9 January 2020
**Compared to the average big six prepayment rate. London Power savings are based on publicly available standard pre-payment tariffs from Big 6 suppliers (E.ON, SSE, NPower, British Gas, Scottish Power, and EDF) for a dual fuel medium usage as defined by Ofgem on a prepayment meter, averaged across the London, South Eastern England, Eastern England and Southern England regions.
1 According to the Ofgem ‘State of Energy 2019’ report https://www.ofgem.gov.uk/system/files/docs/2019/11/20191030_state_of_energy_market_revised.pdf
To sign up to London Power visit mylondonpower.com
Octopus Energy was chosen following a rigorous open procurement process conducted by City Hall and TfL.
The objectives of London Power are to keep energy bills low rather than make a profit. Once the company has broken even, any profit City Hall makes will be invested into community projects.
As part of his Energy for Londoners programme, the Mayor is also working hard to improve energy efficiency in London homes to help tackle climate change. London’s homes are responsible for around one third of the city’s greenhouse gas emissions and a quarter of them have the worst energy performance rating. For more info visit www.london.gov.uk/what-we-do/environment/energy/energy-londoners
In addition to London Power, the Mayor also operates:
- The Warmer Homes programme, a funding energy efficiency improvements for fuel poor owner-occupiers and private tenants;
- The Warmer Homes Advice Service, a fuel poverty advice and referral service;
- An income maximisation service launching in 2020, ensuring that fuel poor Londoners receive all the benefits they’re entitled to.
London Power will signpost its customers to such programmes.