The Energy company was founded in 2015, however, current Mayor of Bristol, Marvin Rees said the company has faced ‘unprecedented challenges’ since being established by his predecessor.
Earlier this year, the council commissioned Ernst & Young to conduct a full and thorough assessment of Bristol Energy’s structure and future business viability.
The Council’s Cabinet reviewed the recommendations during a session exempt due to commercial confidentiality. They agreed selling the company now would prevent any further investment than already agreed. The council will now seek a buyer.
Mayor 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.”
Councillor Craig Cheney, Deputy Mayor and Cabinet Lead for Companies, said “Selling Bristol Energy is in the best interests for the council and city tax payers.”
“We have worked tirelessly to try and turn the company into something that is not only profitable but also offers more to citizens in terms of social benefit as this was always the vision when we took it on. Projects supporting this vision include buying energy directly from over 54 renewable generators, most of them community owned, and the Bristol Energy Fuel Good Fund which supports Fuel Poverty.”
The Council’s cash investment in Bristol Energy Ltd as of 2nd June 2020 was £36.5 million, and total cash funding envelope is set at £37.7 million.