Islington council’s not-for-profit energy company is just £2 cheaper than British Gas and could prove more expensive for pensioners and people on low incomes.
Angelic Energy, the brainchild of Councillor Claudia Webbe, was set up in October at the cost of £100,000, in a partnership deal with Nottingham City Council.
Unlike the ‘Big Six’ energy providers, the company does not offer the government’s Warm Homes Discount, which can reduce energy costs by as much as £140 million.
Although the allowance closed this month, it is expected to open again in the summer.
The figures were calculated using a Uswitch online comparison analysis for Islington Now, using average electricity and gas consumption per household according to OFGEM. Co-op and Lumo energy companies offered cheaper tariffs.
When the information was presented to Islington Council’s Energy Advice Team, set up to help residents with their bills, it recommended that residents switch to British Gas instead of Angelic Energy.
The council said the scheme was meant to help “residents trapped in fuel poverty” and address “inequality in our society”. It aims to get 2,000 people to switch by the end of this year.
Councillor Osh Gantly, herself an Angelic Energy customer, said she had saved £200 on her energy bills.
“People wouldn’t usually tell me if they switched, but one of my residents said they’d saved over £500 by moving to Angelic Energy,” she added.
At Angelic Energy’s launch, Claudia Webbe said, “For years, inflated energy prices have forced thousands of people across London into fuel poverty, with catastrophic consequences for their health and quality of life. Too many are forced to face the question ‘heat or eat?’
“With Angelic Energy, Islington is leading by example in London, taking practical steps to drive down fuel poverty and encouraging people to make the big switch.”
