Former Energy Secretary Sir Ed Davey is to launch an energy supply business.

Sir Ed, who was knighted in the New Year, joined as Chairman of Mongoose Energy last year.

The company’s supply business will source its electricity from renewables and will have a “competitively” priced range of tariffs for its customers.

It will be run in partnership with community energy groups across the country which will return their profits back into their communities to “keep the environmental, social and financial benefits of renewable electricity where they belong”, the company claims.

Mongoose Energy, which will launch its tariffs later this year, expects it to become the UK’s first supply company that is majority-owned by community energy groups.

JW Bode, CEO of Mongoose said: “This is the first for a UK energy company and with the majority of our profits going back into the community groups, I believe this has the potential to transform the nature of energy ownership in the UK.”