Angelic Energy: Islington Council launches new, fairer energy provider for London
Islington Council has made history today by launching London’s first municipal energy provider in more than a century, with a focus on offering fair gas and electricity prices and helping the capital’s most vulnerable households out of fuel poverty.
Angelic Energy is a not-for-profit energy provider set up by Islington Council to help further its commitment to reducing inequality in society. Despite the common perception that Islington is a wealthy borough, it is the 24th most-deprived local authority in England, has the third-highest level of child poverty in the country at 36%, and one of the biggest gaps between the wealthiest and poorest residents.
Energy is a key factor that drives this inequality. Energy prices have risen 36% above inflation over the last 10 years, leaving the poorest in society battling to provide basic necessities like a warm home and a hot meal. Households that struggle to keep up with payments are often pushed onto expensive Pay As You Go meters that offer even worse rates, speeding their fall into greater debt and enduring fuel poverty. This also leads to poorer health, reduced educational attainment and a lower quality of life.
Angelic Energy will help the council address this stark inequality and shape a fairer Islington for all, as it doesn’t have to answer to shareholders or pay directors’ bonuses – instead reinvesting its income in providing good-value energy, good customer service and a fairer deal for all. People on less competitive Pay As You Go deals are also among the least likely to switch to another, better-value provider. Angelic Energy aims to give them the confidence to switch, in the knowledge that it is owned by Islington Council, a name they know they can trust.
Angelic Energy will also target residents trapped in fuel poverty, who often need extra support to actually switch suppliers and benefit from our fairer, better-value prices.
Cllr Claudia Webbe, Islington Council’s executive member for environment and transport, 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?’.
“Children brought up in fuel poverty also do worse at school and college, so helping current and future generations to stay warm and well is an absolute priority for us.
“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.
“We will be offering residents superb customer service and great-value energy tariffs – residents could save up to £277 per year*. All this without any directors’ bonuses to pay or shareholders to satisfy. So find out more, get a quote and join us on our fairer journey!”
Angelic Energy is a white-label provider, set up in partnership with energy company Robin Hood Energy Ltd.
Cllr Jon Collins, leader of Nottingham City Council and Angelic Energy board member, said: “We are pleased to be in partnership with Islington Council in launching Angelic Energy. Our company ethos and values are similar and like Angelic Energy our aim is very much about helping people move out of fuel poverty.”
Angelic Energy aims to offer some of the best-value standard and Pay As You Go tariffs available on the market, helping to keep people warm and well, coupled with outstanding customer service and simple-to-understand billing – a real and fairer alternative to the “Big Six” energy companies. It will offer competitive prices, too – customers on Angelic Energy’s Standard Fixed tariff could save up to £277 per year*.
For more information and to get a quote, see www.angelicenergy.co.uk or call free on 0800 169 0220.
For further information please contact:
Stephen Moore
Senior Media Officer
Islington Council
Room G16, Town Hall, Upper Street, London, N1 2UD
Tel: 0207 527 3224
Out of hours mob: 07769 163303
Alternative contact: Media line 020 7527 2307
www.islington.gov.uk
Follow us on Twitter @IslingtonBC and @IslingtonLife
Notes to editors
Notes to editor
A Pay As You Go meter is another term for a prepayment meter, which has to be topped up with credit before energy is supplied to the customer.
On average, Pay As You Go customers pay £226 more per year than those on the best available tariffs (Citizens Advice, July 2017).
Research suggests 20% of Islington households use Pay As You Go meters to pay for gas, electricity or both. This rises to more than 40% in social housing.
We estimate that a fifth of households are in fuel poverty.
Around 10% of Pay As You Go gas customers and 7% of Pay As You Go electricity customers are in debt on their meters.
Robin Hood Energy is a not-for-profit energy supply company owned and controlled by Nottingham City Council. It was launched on 7 September, 2015, to provide affordable energy to customers and to help tackle fuel poverty. It is the country’s first local authority-owned energy supply company to be launched since nationalisation in 1948.
* Customers on Angelic Energy’s Standard Fixed tariff could save up to £277 per year. This calculation is based on a comparison with the mean average of the standard variable tariffs offered by the six biggest suppliers of energy, for a medium-use, dual-fuel customer living in London who pays by Direct Debit and receives paperless billing. Medium use for comparison is defined as 12,500 kWh of gas consumption and 3,100 kWh of electricity consumption per year. Comparison made on September 20, 2017. Prices may change.
Q+As
Why has Islington Council started Angelic Energy?
Islington is often wrongly typecast as an affluent borough, but in truth it is the 24th most deprived local authority in England, has the third-highest level of child poverty in the country at 36%, and one of the biggest gaps between the wealthiest and poorest residents. To tackle this, the council has committed itself to reducing inequality and shaping a fairer Islington where everyone has the same opportunity to fulfil their potential and enjoy a good quality of life.
As part of this, one of the council’s key priorities is to tackle fuel poverty. We know people are struggling to pay their energy bills and many can’t afford to heat their homes properly. Offering people a fairer alternative to the “Big Six” energy companies can make a real difference to the amount people are paying for their gas and electricity.
People on the worst-value Pay As You Go deals are also among the least likely to switch to another, better-value provider. This is why the council set up Angelic Energy, which is not-for-profit, with no shareholders to satisfy or bonuses being paid to its directors. It aims to supply energy as cheaply as possible to Londoners, offer simple and straightforward pricing, and no-nonsense, supportive customer service.
In addition, Angelic Energy aims to give them the confidence to switch, in the knowledge that it is owned by Islington Council, a name they know they can trust. It offers great deals, because this is why it was created.
What else is the council doing to tackle fuel poverty and reduce energy bills?
Tackling fuel poverty is one of the council’s key priorities. It employs cutting-edge technology to offer a range of innovative schemes to residents and businesses. This includes the award-winning SHINE (Seasonal Health Interventions Network) programme which ensures the most vulnerable residents can afford to heat their homes, and projects like Bunhill Heat and Power Network, a district heating system which will use heat from the Tube to warm local homes. These initiatives and more are helping to reduce energy bills and cut carbon emissions across the borough.
How is Angelic Energy funded?
The council is investing £100,000 in setting up Angelic Energy and in marketing efforts to encourage people to switch or consider switching. Over time the marketing costs will be met by a modest income from those switching to Angelic Energy.
Where do you get your fuel?
Angelic Energy is a white label company set up by Islington Council in partnership with Robin Hood Energy Ltd. The gas and electricity we provide to our customers is supplied to us by Robin Hood Energy Limited, a licensed energy supply company.
Why did you choose Robin Hood Energy?
Robin Hood Energy holds similar values to Islington Council. It is a not-for-profit company, 100% owned by Nottingham City Council.
Like Islington Council, its ambition is to reduce fuel poverty across the country by providing energy as cheaply as it can.
We believe that one of the best ways to support struggling, low-income families is to help them save on their energy bills.
Robin Hood Energy also works especially hard to support prepayment customers who are often offered uncompetitive, expensive tariffs by large energy companies, which is a priority for Islington Council.
It is a forward-thinking energy company which offers low prices, excellent customer service and, most importantly, it puts customers at the heart of everything it does.
Consequently, Robin Hood Energy was a great fit and an excellent choice as our partner.
How green is the fuel?
The fuel for the electricity is supplied by Robin Hood Energy under a “white label” agreement. It represents the best balance between delivering an affordable, value-for-money tariff and use of green, renewable fuels. Our plan is to increase the proportion of green and renewable fuels and reduce the share of carbon-based fuels over time, while still offering excellent value. We are keen to work with Robin Hood Energy on developing greener tariffs in future.
How many people do you want to sign up?
We aim to get 2,000 people signed up to dual-fuel in the first year.
What tariffs are you offering?
Angelic Energy will initially offer four tariffs: Standard Fixed; Standard Variable; Pay As You Go and Winter Fixed. Full details can be found at www.angelicenergy.co.uk
Contact information
If you are a member of the public with a general question about the council please view the contact information on our website or call 020 7527 2000.