Liverpool City Council is looking to follow in Bristol City Council’s footsteps and set up its own energy company.

Elected mayor Joe Anderson will ask the city’s council to approve proposals to explore ways of establishing the company – provisionally known as ‘Liverpool LECCy’ – at its meeting on 18 March. The council would look to form a partnership with an existing supplier to offer lower tariffs.

Anderson said: “Cutting fuel bills is one of most significant ways we can help provide real and lasting benefit to Liverpool people. I want us to do something practical to help tackle fuel poverty, which is why we’re setting up this energy company – the Liverpool LECCy – which will be owned by and run for the people of the city, giving them a cheaper alternative energy provider.

One key priority for the energy company would be to find a solution for the 70,000 households  – a third of all in the city –  currently using costly pre-payment meters, who are unable to take advantage of cheaper direct debit deals. Liverpool Leccy, it’s proposed, would look to replace these with smart pay-as-you-go alternatives.

“It’s absolutely heart-breaking how many families in this city are reliant on expensive prepayment meters and are, in effect, being penalised by paying more for their energy than those who are able to use direct debit, especially as single parent families are the hardest hit,” the mayor said.

Liverpool City Council has been working closely with other big cities which are also exploring this type of venture including  Bristol, Nottingham and Leeds and is looking to share experiences with them. Bristol City Council launched its municipal energy company in February. The company will provide services to customers nationwide and profits will be invested back into Bristol, supporting council services to citizens and community projects. The company is looking to support local renewable energy generators. In Nottingham, Robin Hood Energy has a special tariff for Nottingham City residents and can specify lower rates in areas of high fuel poverty.

Related content from New Power Report:

Energy retailers: How are they changing?

Energy company owned by Bristol City Council launches

The New Power Interview: Peter Haigh, managing director, Bristol Energy

Subscribe to New Power for full analysis, comment, interviews and data in our monthly report, and access to our database, or sign up to our FREE e-newsletter for website updates