Lower priced energy on the way as Shropshire Council agrees deal with SSE

Shropshire Council is set to join forces with energy company SSE plc to supply lower priced energy to Shropshire residents, and to generate income for the council.

Following an open ‘invitation to partner’ process in March this year, Shropshire Council received and assessed submissions from five different energy suppliers, each proposing different models to supply energy to people in the Shropshire Council area.

At their meeting last month (28 September 2016) Shropshire Council’s Cabinet agreed the proposed model put forward by SSE, which will offer a ‘community tariff’ that’s unique to Shropshire residents. This will be set at a rate of 5-10% lower than SSE’s own standard tariff.

The tariff rate and level of discount will depend upon the wholesale cost of energy at the time of its launch, scheduled for spring 2017. Shropshire residents who are currently on SSE’s standard tariff will be able to transfer to the ‘community tariff’ and benefit from the discount with no exit fees applied.

Under the plans Shropshire Council will receive a payment for each customer that signs up to the Shropshire community tariff.

Shropshire Council won’t be ‘selling’ the tariff, but will be promoting the offer available to Shropshire residents.

The council’s ongoing negotiations with SSE will also look at additional offers to customers such as broadband and boiler maintenance cover, and opportunities to identify priority vulnerable groups where measures to alleviate fuel poverty issues could be delivered.

It is anticipated that the work to complete the formalities relating to the agreement of the model will be completed in the New Year.

Nic Laurens, Shropshire Council’s deputy Cabinet member responsible for income generation, said:

“This is great news for Shropshire Council, for Shropshire residents, and for SSE’s Shropshire customers. The model put forward by SSE offers a discount to residents from a well-known and established brand, and will generate income for the council.

“There will also be opportunities for added social value, which includes opportunities for energy efficiency improvements through the Energy Company Obligations (ECO) scheme to support targeted residents in fuel poverty, and the opportunity for additional offers to be added to the tariff.”

Lee Maher, Head of Partnerships at SSE said:

“We’re very happy to be working with Shropshire Council, creating more options for energy customers in the county. The energy market is evolving and at SSE we’re always looking out for new and exciting ways to engage with customers. We hope this new partnership with do just that.”