A new contender is set to enter the UK retail market as the Mayor of London, Sadiq Khan, and Octopus Energy revealed the launch of London Power.
London Power – which is set to launch in December – will be a 100% renewable supplier, offering a 12 month fixed tariff for electricity and gas and comes with the promise of always being within the cheapest 10% of comparable tariffs available in the market.
It will also offer to roll-over customers onto the cheapest comparable tariff available at the end of a contract, as well as no exit fees.
The creation of a new supplier comes as part of the Energy for Londoners programme and is being delivered in partnership with Octopus following a “rigorous” open procurement process conducted by City Hall and Transport for London.
Profits from the business will be reinvested into tackling fuel poverty and London and transitioning to net zero.
The launch of the new supplier comes during a turbulent time for the UK retail market, with 12 independent suppliers collapsing in the last two years and large acquisitions and partnerships being made, with OVO set to acquire SSE’s supply division and Octopus itself agreeing a significant strategic energy partnership with Co-op Energy.
Stuart Jackson, co-founder of Octopus Energy, said London Power has the opportunity to “turn around a strained system” due to its customer service, fairer prices and reinvestment of profits into environmental initiatives.
London Power is being launched with the aim of addressing issues such as London’s low rate of switching providers, high levels of pre-payment meters usage and low levels of energy efficiency measures, smart meters and solar panels.
The Mayor of London, Sadiq Khan, said: "It is a sad fact that millions of Londoners struggle to pay fuel bills and are subject to inflated rates from major energy companies.
"Now I want London Power to give Londoners a better, fairer deal on fuel prices, as well as the knowledge they won’t be switched over to a rip-off tariff when their contract ends," Khan continued.