The scheme could benefit close to 177,000 homes across Nottingham City and would cost locals roughly £1m in council tax payments.
At present the council is hoping to be able to launch the initiative in 2015, including a dedicated high street shop and call centre.
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Move could help locals faced with rising energy costs
Alan Clark, the city council’s portfolio holder for energy and sustainability, told the Nottingham Post that the initiative would help those struggling to pay their energy bills.
Speaking on the project’s objectives he said: “Our aim isn’t and never will be to be like one of the six big energy suppliers – we want to be much better than that.
“The way supply chains work means that we can offer the best possible deals to Nottingham people, including people living in the Nottingham conurbation such as Arnold, Beeston or West Bridgford.”
Energy will come from a range of sources
The council’s energy company would seek to provide an alternative to the big six energy suppliers which currently dominate the British energy market. All profits would be reinvested into the energy supplies.
The energy provided by the company would be produced by the Eastcroft incinerator, excess energy created by solar panels, as well as gas and electricity bought from the wider market.