City councillors in Portsmouth are due to meet next week to reconsider plans to scrap its controversial energy company, Victory Energy.
The council’s cabinet will meet on Tuesday (27 November) to discuss a new report on the energy company, which contains revised financial figures that claim it could generate up to £22 million for the local authority with its first five years of operating.
Victory Energy was originally launched by the-then Conservative administration in 2017, although it is still not trading.
In August, the new Liberal Democrat administration decided to scrap the energy company after councillors felt it “more responsible to cut the council’s losses” rather than risk spending further money with no guarantee of it being returned.
That decision was subsequently challenged or “called-in” by the Tories and now a new revised business has been drawn up.
According to the new report, the council could make a £22 million investment return by the fifth year of trading, compared to £2.5 million, which was stated in the August.
The new report also claims the council could make a return of £63 million after 10 years, compared to £50 million in the August report.
And the risk of scrapping the company completely is now estimated to be between £1.7 million and £4 million, whereas previously it was between £2.5 million and £3.5 million.
It also claims Victory Energy would be able to offer a tariff, which is not only cheaper than a “white label” alternative but also lower than many of the rates offered by the Big Six providers.
Speaking to Utility Week, the Conservative group leader and former council leader, Cllr Donna Jones said: “I’m pleased that PWC have provide yet further advice to Portsmouth City Council, but this time reflecting and understanding the strengths of Victory Energy.
“PwC has confirmed that Victory Energy is highly investible, offering Portsmouth’s residents and businesses true energy independence.”
The council’s deputy leader, Cllr Steve Pitt, commented: “We look forward to taking the opportunity to hear opinions from all parties at next week’s meeting. We are carefully considering all of the information available to decide on the best way forward.”