Bristol to sell council-owned energy company

Bristol City Council has agreed to sell the local authority owned company, Bristol Energy, following continued challenges.

The council says that the company has faced unprecedented challenges since being established in 2015, and the cabinet has now agreed that selling the company now would prevent any further investment than already agreed and is now seeking a buyer.

The council’s cash investment in Bristol Energy Ltd as at 2 June 2020 sits at £36.5 million, and total cash funding envelope is set at £37.7 million, as previously approved.

Mayor Marvin Rees said: “Establishing an energy company was always a high risk for the council, and one which has brought continued challenges. The energy market is dominated by well-established far larger energy providers. Having inherited a failing company where £15 million had already been spent or earmarked for spend, we were faced with a choice. We could have closed the company then or tried to develop a business strategy that would succeed, both in tackling fuel poverty in Bristol and delivering a financial return for the city.  This proved to be impossible in such a volatile market place.  

“We have tried to work in the best interests of the city and Bristol Energy customers, but been unable to divulge the challenge we were tackling as this would have further disadvantaged us against competitors.”