Council’s energy firm ‘will pose risk’

AN energy company run by Birmingham City Council is unlikely to save residents money, claim Conservatives.

The Labour-run council is drawing up plans to launch a company and offer ‘cut-price’ gas and electric to citizens, as well as reduce its own hefty energy bills.

But Conservatives fear the project will be an expensive failure, highlighting problems encountered with council-owned energy companies in Bristol and Nottingham.

The Labour leadership has been considering the plan as it looks for schemes to raise money.

But Tory shadow cabinet mem- ber Meirion Jenkins said the council has been financially inept in recent years, failing to deliver services on budget, and he has little confidence in them making the energy company work.

He warned: “The city council should concentrate on its core activities and not expand into areas where it has no expertise and where there is already adequate private sector provision.

“Moreover, I note that external auditors have expressed severe doubts about a similar enterprise being undertaken by Bristol City Council.”

Bristol set up its energy company in 2016 and is already experiencing ‘greater than expected losses’ according to an auditor’s report.

Cllr Jenkins added: “It is clear from the experience in Bristol that the move to create an energy company would present a very real risk to the revenue budget in Birmingham which may impact on core services.

“Birmingham residents would receive no real benefit over what they could achieve through active switching in the energy market but may lose out from reduced services and perhaps an increase in council tax to subsidise this Labour vanity project.”

The city council is drawing up a business plan for the energy company through which it hopes to compete with big suppliers.

It also wants to back green and renewable energy schemes to help reduce bills and carbon emissions for residents.

The council also hopes to slash its own £25-million-a-year fuel bill.