London applies for 'lite licence'
- Generation ,
- Conventional ,
- Renewable ,
- Public sector
The Greater London Authority (GLA) has become the first local authority to apply to Ofgem for a "lite licence"
The electricity supply licence that will allow the GLA to buy excess power generated by public bodies, such as individual London borough councils, and resell it to other public sector organisations.
Under the licensing conditions of the Energy Act 1989, electricity suppliers must comply with industry codes of practices, which until now have been prohibitively expensive for small distributed energy schemes (DESs).
Since revisions made in February 2009, new lite licences can be granted, essentially passing responsibility for compliance to the supplier rather than the DES.
If granted, the licence will help to raise investment in local generation projects, says London mayor Boris Johnson, who has set a target for the city to produce 25% of its energy locally by 2025.
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