Two new municipal energy companies launch

Islington and Doncaster are the latest councils to launch their own energy companies, following deals with Nottingham council’s Robin Hood Energy.

A raft of municipal energy companies have opened in the last few years, providing a not-for-profit alternative to the ‘Big Six’.

Islington council announced the launch of Angelic Energy this week, the capital’s first municipal energy company in more than a century.

In a statement the council said that the new provider would help it bring down inequality in the borough, and combat fuel poverty. Islington has the third-highest level of child poverty in the country at 36%, and a fifth of households are in fuel poverty.

With energy prices having risen by 36% above the price of inflation over the last decade, many households struggle to provide basic heating and food, the council said. It wants to prevent its poorest citizens from being pushed onto Pay As You Go meters, which are often the highest tariffs. A total of 20% of Islington households are on Pay As You Go meters, a figure which rises to 40% for those in social housing.

The new company will offer some of the best value deals for gas and electricity, that could save customers up to £277 a year.

Claudia Webbe, Islington Council’s executive member for environment and transport, said: ‘Children brought up in fuel poverty do worse at school and college, so helping current and future generations to stay warm and well is an absolute priority for us.

‘With Angelic Energy, Islington is leading by example in London, taking practical steps to drive down fuel poverty and encouraging people to make the big switch’.

Doncaster council will launch Great North Energy in November, after successfully helping residents save over £450,000 through its Big Power Switch programme.

The council said in a statement that ‘even the savviest of switchers still aren’t always getting the best deal with profit driven companies’.

The company will run in partnership with Robin Hood Energy, set up by Nottingham Council in 2015 as a fully licensed municipal energy company. Robin Hood also partners with Liverpool council’s Leccy, Leeds council’s White Rose Energy and Derby’s Ram Energy.