London is to become the UK’s first public authority to receive a new type of “junior” electricity licence that will enable mayor Boris Johnson to buy power from small generators and sell on to public bodies.
Under the licence, the Greater London Authority will be able to offer the capital’s small electricity producers up to 30% more for their excess energy than existing suppliers, which it will then sell on to public bodies such as Transport for London (TfL), the Met and others at cost price.
This will “boost the low carbon economy and help to secure London’s future energy supply,” the mayor’s office claims.
The mayor is now calling on the electricity market to come forward with proposals to provide the additional services required to begin his supply venture as a junior licensee.
According to the mayor’s office, the GLA will initially buy from generators owned by London’s boroughs and public bodies. If the scheme proves successful, the mayor will extend plans to include private sector energy producers in London as well.