A new not-for-profit energy company to tackle fuel poverty in Liverpool has launched – and it could save households hundreds of pounds per year.

The LECCY – Liverpool Energy Community Company – is offering gas and electricity cheaper than that offered by the ‘Big Six’ and will offer advice to households to help them move off costly prepayment meters and on to cheaper direct debit tariffs.

The LECCY will also support people to move over to SMART meters so they can manage their energy use and provide help with managing their bills.

The LECCY is a partnership between Liverpool City Council and Robin Hood Energy, a not-for-profit energy supplier owned by Nottingham City Council, and is supported by Mayor of Liverpool Joe Anderson.

More than 1,000 people have already expressed interest in signing up ahead of the launch and the council has secured a one year fixed rate deal that is cheaper than tariffs currently offered by the Big Six energy suppliers. It could save a medium user of gas and electricity over £250 per year compared to the most expensive Big Six tariff^[1].  Further fixed rate deals for Liverpool are in the pipeline and will be announced in the coming months.

Mayor Anderson said: “One in three households in Liverpool pay over the odds for their gas and electricity because they have prepayment meters which are far more expensive than other tariffs.

“By setting up a not-for-profit company, we can offer really competitive rates. We’re not out to make a profit for shareholders like other energy suppliers, and will instead focus on delivering the best value for local people.

“We won’t be offering gimmicks or introductory loss-leaders. What we will be doing is offering good value tariffs and helping people to get the best deal for them.

“This is part of our commitment to supporting residents in difficult times, helping them save money to offset the impact of austerity.”

One in seven Liverpool households live in fuel poverty, compared with one in ten nationally and 70,000 households in the city are forced to use prepayment meters.

Research by Citizens Advice shows people who use these meters pay £226 more a year on their fuel bills compared with the cheapest direct debt tariff.