Nottingham City Council has launched the first local authority-owned energy supply company.
Robin Hood Energy aims to provide low cost electricity to customers and help tackle fuel poverty.
The council expects customers who switch to the not-for-profit energy supplier to save an average of up to £237 per year on their gas and electricity bills.
It said it has brought together “a team of industry experts and service providers who have experience in creating and running energy companies”.
Councillor Alan Clark, Nottingham City Council’s portfolio holder for Energy and Sustainability said: “The UK’s domestic energy market has been hit with fluctuating government policies and subsidy cutbacks. In recent years, the cost of utility bills has spiralled as the profit-hungry Big Six energy companies have exploited their monopoly.
“We have decided to take the bold step of setting up Robin Hood Energy so that energy can be provided to customers across Nottingham and beyond at the lowest possible price, run not-for-profit but for people.”