Mayor to supply London’s energy

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Mayor to supply London’s energy

 

London Mayor Boris Johnson has announced details of his plan to become the capital’s smallest energy electricity supplier in order to gradually develop the capitals’ energy independence.

 

The mayor’s office is expected to become the city’s newest and smallest electricity supplier after the scheme's official launch in 2015, a move aimed at lowering bills and improving energy independence.

 

According to the announcement, the Mayor would buy power from small generators owned by London boroughs and public bodies at a better rate and sell it on to other public bodies such as Transport for London, the Metropolitan Police and others at cost price in order to produce 25% of the capital's power from local sources by 2025.

 

London will be the first public authority in the country to receive a brand new type of ‘junior’ electricity licence, allowing the Mayor to offer the capital's small electricity producers up to 30% more for their excess energy than existing suppliers do.

 

Twelve boroughs and waste authorities have already been earmarked as having small-scale power generating schemes that could benefit from the expected 30% premium that Energy for London would be able to pay.

 

The Mayor stated: “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, specialists jobs and growth in this city’s burgeoning low carbon sector."

 

The Mayor has been the leading figure in taking this new system of licensing forward and has been working with Ofgem and the Department of Energy and Climate Change since 2011 to develop it.

 

The scheme is expected to unlock more thans GBP 300 million worth of investment for 22 new heat and power projects as well as generate around 850 construction jobs a year until 2025.

 

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.”

 

Photo Source: Itv

 

Sources:

www.theguardian.com

www.london.gov.uk

www.morningstar.co.uk

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