Mayor Boris Johnson to become London’s smallest electricity supplier

London is to become the UK's first public authority to receive a new type of "junior" electricity licence that will enable the Mayor Boris Johnson to buy power from small generators and sell on to public bodies.


Under the license, the Mayor will be able to offer the capital’s small electricity producers up to 30% more for their excess energy than existing suppliers, which he will then sell on to public bodies such as Transport for London (TfL), the Met and others at cost price.

This will “boost the low carbon economy, and help to secure London’s future energy supply,” the Mayor’s office claims.

The Mayor is now calling on the electricity market to come forward with proposals to provide the additional services required to begin his supply venture as a ‘junior’ licensee.

According to the Mayor’s office, Johnson will initially buy from generators owned by London’s boroughs and public bodies. If the scheme proves successful, the Mayor will extend plans to include private sector energy producers in London as well.

Johnson said: “Nurturing a new crop of small, low carbon energy producers across the capital is the key to a more secure, cost-effective and sustainable energy supply for us all. Investing in locally sourced power will help keep Londoners’ fuel bills down and drive innovation, jobs and growth in this city’s burgeoning low carbon sector.”

Secretary of State for Energy and Climate Change Ed Davey said; “This is a significant development and I welcome that London will be the first public authority in the country to become a small electricity supplier. Opening up our energy market to smaller companies is good news for competition and therefore good news for consumers.

“This is part of my vision to help to meet the UK’s energy and climate change challenges, supporting a sustainable and secure energy system; reducing UK greenhouse gas emissions; and lowering consumer bills,” added Davey.

Leigh Stringer

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