North Ayrshire Council consider White Label energy option
An initiative that could massively reduce fuel poverty across North Ayrshire is being considered by North Ayrshire Council.
The local authority is set to explore an option which would allow it to create its own local energy tariffs.
Partnership
Known as an ‘Energy White Label’ the council would form a partnership with a gas and electricity supplier – allowing greater control of the prices available to customers across North Ayrshire, although only for electricity on Arran.
White Labels have already proved particularly successful in England as they give councils an opportunity to influence tariffs and engage with customers who may struggle with their energy bills.
The creation of a White Label should bring further opportunities to deploy smart meters in houses across North Ayrshire and allows greater scope to move people away from pre-payment meters – the least cost-effective way of paying for utilities.
Councillors will hear of the proposals at a meeting of North Ayrshire’s cabinet approved the plans which would see the council begin speaking with suppliers to see if there is a willingness to support and meet the council’s objectives.
Officers will also assess whether there will be a customer demand for this type of project across North Ayrshire.
Craig Hatton, executive director (place), said: ‘This has the potential to be a huge and positive development in our battle to get rid of fuel poverty in North Ayrshire.
Dominated
‘The markets for domestic electricity and gas supply have become increasingly dominated by a small number of large suppliers. Ingrained pricing structures often lead to high tariffs for those who can least afford them.
‘But, in recent years, new smaller suppliers have entered the market some of whom retail energy from renewable sources or operate on a not-for-profit basis. We want to try and capitalise on this and make the market in North Ayrshire much more competitive and affordable.’
Under a White Label arrangement the council creates, markets and promotes a local energy brand and tariff structure. The supply, functions and regulatory burdens of which are then fulfilled by the licensed supplier partner.