City council chooses preferred supplier for its new energy company that will tackle fuel poverty in the city by selling gas and electricity to at a lower rate than other suppliers. Tony McDonough reports.

Council chiefs in Liverpool are moving a step closer to setting up an energy company to help tackle fuel poverty in the city after choosing a preferred supplier.

The city council has agreed to launch the company – the Liverpool LECCy – to sell gas and electricity at a lower rate than other suppliers.

Following a tendering exercise, the city council cabinet is being asked to award the contract as licensed energy supplier to Robin Hood Energy, a not-for-profit enterprise launched by Nottingham City Council.

Councillor Steve Munby, cabinet member for neighbourhoods, said: “The new energy company will be an extremely important way of combatting fuel poverty which affects far too many households in Liverpool.

“We want to give people the opportunity to have their gas and electricity supplied by a company where profit is not the main consideration and to provide an alternative to the ‘big six’ energy companies.

“The new company will be owned by and run for Liverpool people. We have been seeking a supplier which is able to help our residents cut their energy bills. The recommendation to the cabinet is a major step forward in getting Liverpool LECCy up and running and we are looking for it to be operating early next year.”

Moves to set up the new company came as figures show that one in seven Liverpool household live in fuel poverty, compared with one in ten nationally.

And 70,000 households in the city are forced to use pre-payment meters.

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

One of the main aims of the new company will be to replace the pre-payment meters with the latest SMART  meters which, as well as cutting costs, will enable users to manage their energy use more efficiently and so will help  reduce CO2 emissions.

The recommendation to award the contract to Robin Hood, Energy will be considered by the cabinet on November 11.