Bristol City Council agrees to sell Bristol Energy

A council-owned energy company which has posted losses of more than £30m is to be sold.

Bristol City Council agreed to sell Bristol Energy during an exempt section of a cabinet meeting on Tuesday.

Opposition councillors last month called for an inquiry into the energy firm and described it as a "dead weight" on council finances.

At that time Mayor Marvin Rees said it would be "unwise" to sell the company.

The council invested £35m in Bristol Energy, which was set up in 2015, but the firm has so far posted losses of £32.5m.

The sale comes after a recommendation from accountancy firm Ernst and Young, which was commissioned to write a report about the energy company's finances.

Mr Rees said he was unable to "divulge the challenge we were tackling as this would have further disadvantaged us against competitors".

The Local Democracy Reporting Service said an audit committee meeting last week was told changing market conditions and the pandemic were expected to wipe up to £7m off Bristol Energy's value.

Mr Rees said the authority had faced three choices for the company: to collapse it, to try to make it work or to get to a position where the level of risk is reduced.

"To collapse it wouldn't have been an acceptable decision," he said.

"Hindsight is fantastic but we've got a lot of people now criticising [an] energy company when at its launch they were its biggest champions.

"I'm disappointed it didn't work, of course I am."