The mayor of London is pressing ahead with plans to create a fully fledged energy company that will target poorer customers. Sadiq Khan said that the not-for-profit supplier, to be called Energy for Londoners, would be based on similar schemes in Bristol, Nottingham and Scotland. He said that the scheme would reduce bills for the 326,000 London households who cannot afford to properly heat their homes, while also delivering environmental benefits. The formation of an energy company was proposed in February, before Mr Khan’s election. Supporters of council or local authority-owned energy suppliers say that there is growing evidence that they can shake up a market dominated by the six big suppliers, which are under investigation by the Competition and Markets Authority. Mr Khan had said that the company would consider using Transport for London’s land and buildings for photovoltaic solar panels. It will also consider issuing green bonds to fund green projects and will look at schemes that harness waste heat, such as one in Islington, in inner London, that extracts heat from the Northern Line. Michael Jacobs, associate director of the Institute for Public Policy Research, said: “In London there are quite a lot of people who would like to produce green energy. Over the last year they have been hit by changes to the feed-in tariffs. One of the things a municipal company might be able to do is guarantee a good price for community-based renewable energy.” Mr Jacobs suggested that the Greater London Authority could finance work to make homes and buildings more energy efficient in a scheme that would be like the Green New Deal but with lower interest rates.