Southampton City Council will partner with Robin Hood Energy to launch a not-for-profit energy brand this summer.
The new company, Citizen Energy plans to offer “fairly priced” gas and electricity to residents, while reinvesting profits into local energy efficiency initiatives.
Southampton Council said it aims to help some of the city’s “most vulnerable households” out of fuel poverty.
It will also lead a project that will see up to 13 other local authorities, yet to be revealed, using the brand to sell gas and electricity to residents.
Councillor Christopher Hammond, cabinet member for sustainable living, said: “As a council, we are committed to improving the health and quality of life for our residents, particularly the most vulnerable, 10,000 of whom are thought to be living in fuel poverty.”
He said Citizen Energy will provide a “real alternative” to the big energy companies.
“We will not be generating profits for shareholders and so we can pass those savings on to our customers. The name of the brand was chosen following consultation with local residents and reflects our approach to putting people at the centre of everything we do,” he said.
Robin Hood Energy was chosen as the energy supplier for Citizen Energy, following a procurement process. Southampton Council said the company’s “goals and ethos” match those of the council.
Launched by Nottingham City Council in September 2015, Robin Hood Energy has also recently partnered with West Sussex County Council to launch Your Energy Sussex.
Councillor Steve Battlemuch of Nottingham City Council and chairman of Robin Hood Energy, said, “Our ethos is closely aligned to that of Citizen Energy, to offer a truly ethical alternative to all consumers, including the fuel poor and those on prepayment meters.
“Together, our focus will be on competitive tariffs, responsive customer service and innovation in how we support the most vulnerable customers. The venture follows similar partnerships between Robin Hood Energy and other local authorities elsewhere in the UK where we are already delivering benefits in communities.”
In January, Robin Hood Energy posted a £7.6 million loss for the year ended March 2017.
A spokesman for the company told Utility Week losses are the norm for new entrants to the retail market and that it expects to break even over its current financial year.