London set to launch tender for dedicated energy supplier

London Mayor Sadiq Khan is set to launch a tender this week for a new energy company to supply Londoners.

The initiative is part of the London Environment Strategy, published last week, which includes carbon budgets aiming to reduce the amount of greenhouse gasses emitted in London for the next 15 years. The first aims for a 40% reduction in CO2 emissions from 1990 levels in 2018-2022. The Mayor aims for London to become a zero-carbon city and at least 50% green by 2050.


The strategy also plans for a 20-fold increase in solar PV capacity in London, with 1GW of solar installed in the capital by 2030 and 2GW by 2050. 

The tender for the delivery of an energy supply company was kicked off with a Prior Information Notice issued in November 2017, and  a supplier day held in December 2017. 

The Mayor’s priorities to be set out in the tender are:

  • Competitively priced electricity and gas tariffs
  • Exemplary customer satisfaction
  • Innovation to help Londoners, especially those in fuel poverty
  • Integration with other energy programmes, especially those focussed on fuel poverty and energy efficiency
  • Generating a commission to reinvest in energy or fuel poverty projects
  • Supporting the possible future transition to a fully licensed supplier or another service provider
  • Providing void services including handling vacant properties, including the installation of smart meters during void periods

See details of the Environment Strategy

Further reading

Supplier chiefs want more oversight from Ofgem

Feature: No turning back the tide of switchers

The New Power Interview: Peter Haigh, managing director, Bristol Energy

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