Bristol Energy was 'wrong market', says city mayor

The Mayor of Bristol has admitted the energy market was the "wrong" one to enter, as the council continues its sale of the debt-ridden Bristol Energy.

The council decided in June to sell the firm, which has so far posted losses of £32.5m, after investing £35m since setting it up in 2015.

"Everyone [had been] saying how fantastic it would be for the city," Marvin Rees told BBC Radio Bristol.

"That energy business was the wrong one for the local authority to get into."

An audit committee says the coronavirus pandemic and changing market conditions were also expected to wipe up to £7m off Bristol Energy's value.

Mr Rees said the council would have been better off setting up a housing firm instead.

"We inherited a business plan which said it would have been one of the most profitable energy firms in the country, and had no reason to disagree with that.

"The energy business is expensive to get into, expensive to operate and expensive to get out of."

A new owner for the energy firm has yet to be confirmed by the council.

Mr Rees added there was a "good amount of interest" in the sale.

"We'll see what proceeds we can get for the city and what the deal is."