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Sadiq Khan-backed renewable energy company London Power launches

Oscar Williams-Grut
·Senior City Correspondent, Yahoo Finance UK
Mayor of London Sadiq Khan talking to commuters at London Bridge station at the start of his campaigning for the London Mayoral election. (Photo by Rick Findler/PA Images via Getty Images)
Mayor of London Sadiq Khan pledged to set up an affordable energy company for Londoners in his manifesto. Photo: Rick Findler/PA Images via Getty Images

A new renewable energy company set up by the Mayor of London officially launched on Monday, claiming it could save London households up to £300 a year.

London Power will officially begin switching customers over to its energy this week. The renewable energy provider is a joint venture between the the Mayor’s office and Octopus Energy.

Mayor of London Sadiq Khan pledged to set up an affordable energy company for Londoners in his manifesto and first announced the joint venture in September last year. Around 1,000 people have already pre-registered for accounts and Khan himself will have his energy switched over today. The service is only available in London.

“London Power is a different kind of energy company,” Khan said in a statement. “For the first time we have a fair, affordable, green energy company specially designed for Londoners.”

READ MORE: UK economy shrank significantly ahead of general election, raising recession fears

All power will be generated from renewable sources such as wind, solar, or surf. Any profits made by the company will be invested into community projects tackling fuel poverty, climate change, and working towards the goal of making London a zero-carbon city.

As well as boasting strong environmental credentials, City Hall claims switching to London Power could save the average household £300 a year in bills.

"Octopus Energy has been at the forefront of affordable, fairly priced green energy since our inception four years ago,” Stuart Jackson, the co-founder and finance head of Octopus Energy, said in a statement.

“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."

London Energy is one of a number of local energy providers that have been set up across the UK in recent years, with most set up to tackle fuel poverty. Similar initiatives exist in Nottingham, Derby, and Liverpool.