London Power says it hopes its “renewed communication push” will attract more customers this autumn, after signing up fewer than 4,000 in its first nine months of operating.
In July the Greater London Authority said due to the pandemic it was scaling back its marketing plans for the supplier, which is powered by Octopus Energy.
In its latest quarterly update, the company said it had been “developing new energy plans and enhancing the customer experience”, adding that it was supplying 3,658 homes at the end of September.
“We’re pleased to see customers continuing to switch to London Power, and hope our renewed communication push this autumn will ensure we can reach as many Londoners as possible with energy that’s always fair, affordable and green”, the company said.
Council-backed energy retailers have faced a tough retail environment in recent months, with the only two wholly-owned council-run suppliers, Robin Hood and Bristol Energy, ceasing to trade earlier in the summer.
Speaking at Utility Week’s Build Back Better forum earlier this week, Bristol mayor Marvin Rees was asked whether he could foresee a future for council-backed power suppliers.
He said: “I think there was a lot of optimism in 2015 about producing 35 per cent returns within 10 years, this is what the business plan was saying. There was a lot of optimism but very high risk and potentially high costs as well, which has proven to be the case.
“I did actually say when I was at the Labour conference a few years ago, when loads of local authorities were talking about setting up energy companies and getting into it and solving fuel poverty, I gave them a general warning and said it’s just not that easy.
“I think local authorities should be very careful about what they do in energy and how they do it.”
After calling in advisers Robin Hood customers were eventually sold to British Gas, while challenger brand Together Energy purchased Bristol Energy for £14 million.
Rees added that his local authority was still involved in energy through City Leap, a £1 billion package of investments to decarbonise Bristol’s energy systems.
“We are bringing partners in with the expertise, but we are not going to be only in that process ourselves”, he said.