Liverpool City Council looks set to hand Robin Hood Energy the contract to run its new energy company. The firm is behind Nottingham City Council’s energy company which launched last year.
The company, Liverpool Energy Community Company, will be known simply as ‘the LECCy’.
Following a tender exercise, councillors have recommended Robin Hood is awarded the five-year contract, due to commence in March 2017.
While the service will initially supply domestic customers, one of the council’s three stated main aims is that is also supports local businesses – and a council spokesperson confirmed to The Energyst that businesses will be able to switch to the company when it is up and running.
According to a Council Cabinet report to the Mayor earlier this year: “Longer term, opportunities to expand the scope of the LECCy will continue to be explored. This might include, for example, opening out the benefits to public sector organisations and local businesses, enlarging the geographical area to cover the Liverpool City Region Combined Authority area and providing a route to market for local renewable electricity schemes to enable local consumers to access local renewable energy such as tidal, offshore wind or district heat projects.”
As well as Nottingham, Bristol City Council has also launched its own energy company, with all three aiming to give local residents, particularly those on low incomes who often cannot access the most competitive deals on the market, access to better value energy deals.
However, while minimal overheads and not-for-profit models help keep prices low, some market commentators have questioned whether local councils can compete on price with market incumbents – particularly as wholesale prices are now on an upward trend.
Free download: The Heat Report 2016