COUNCIL-OWNED energy company Victory Energy has been axed by Portsmouth City Council’s administration – with plans to sell it off. In the latest in a series of meetings held over the future of the energy company, the ruling Liberal Democrats said the venture would be ‘too risky’ in a move that will lose more than £2m of invested cash. It is estimated between £1.7m and £4m will be lost, Portsmouth City Council said. At a special cabinet meeting this morning council leader Councillor Gerald Vernon-Jackson stuck by his party’s original decision made earlier this year to end public investment in the company, which paid £270,000 to its chief executive over 17 months.
Portsmouth News 27th Nov 2018 read more »
Portsmouth City Council’s previous Conservative administration approved the contract to set up Victory Energy, but it was yet to go into operation. Former leader Donna Jones insisted it was a “highly investable business that would generate millions of pounds”. At a cabinet meeting, the new Liberal Democrat-run administration maintained it was “too risky” and would be closed at a cost of at least £2.5m. Victory Energy was set up in 2017 with the aim of providing residents with low-cost renewable electricity and to generate money for the council. At the time, it was claimed the company could reap up to £5m annual profit after an initial investment of £8.1m. However, an independent report by PricewaterhouseCoopers said that was dependant on 144,000 customers signing up. It added the council would have had to invest £19m over four years. The company had been due to start operating in the autumn but was halted in August after the Liberal Democrats regained control of the council following May’s elections.
BBC 27th Nov 2018 read more »