It has created a not-for-profit, arms-length organisation called Robin Hood Energy, which brings together experts with experience in creating and running energy companies.
Robin Hood’s directors are not paid a salary and employees do not receive bonuses to help maintain low overheads, the council said.
The new supplier added it may consider a Power Purchase Agreement with a local or national energy generator in the future.
The supplier is offering three tariffs, one fixed for a year and a variable deal, both of which are available to customers in England, Wales and Scotland. The final tariff is available exclusively to residents of Nottingham.
The council said the move is driven by its “commitment to provide affordable energy to customers and help tackle fuel poverty” and it claimed switching to the supplier could save customers up to £237 on their energy bills per year.
Nottingham City Council’s portfolio holder for energy and sustainability councillor Alan Clark says: “In recent years, the cost of utility bills has spiralled as the profit-hungry big six energy companies have exploited their monopoly.
“We have decided to take the bold step of setting up Robin Hood Energy so that energy can be provided to customers across Nottingham and beyond at the lowest possible price, run not-for-profit but for people.”