Question

To ask Her Majesty’s Government what assessment have they made of local authorities setting up energy companies to provide cheaper energy to their residents.

This Government is keen to understand the re-emergence of local authorities as energy companies and the potential benefits to their residents. In order to tackle the barriers surrounding this we launched the UK’s first Community Energy Strategy in January 2014 and we take views from a Local Supply Working Group.

Our Strategy recognises that local authorities are crucial to community energy activities and sets out how Government intends to help communities build strong and productive partnerships with the public sector. One of the commitments is to carry out a sector survey in 2016, including a local authority section.

We welcome recent developments in local authority engagement in the energy sector, for example, Cheshire East Council is the first local authority to have entered into a partnership with Ovo Energy under their new ‘Communities’ tariff. It is too early to make an assessment of these developments as the details are still being finalised.

In addition we expect to know the outcome early next year of the application by the Greater London Authority for a “Licence Lite”– if successful, the GLA will be the first authority to take advantage of Ofgem’s streamlined arrangements for supplying electricity.