LONDON (Brand Republic) - Virgin and London Electricity have announced a joint-venture to sell energy via the internet, which they claim will bring lower prices for gas and electricity to households in the UK.
Virgin Energy, which launches tomorrow (July 4), will be 75% owned by Virgin. The funding of the project is yet to be confirmed.
Virgin chairman Richard Branson said, “For too long, customers have been supplied energy by faceless institutions at inflated prices. We took a look at all the waste and bureaucracy in this industry and knew we could provide a better service at a lower price.”
The deal is subject to regulatory clearance, but Virgin is already allowing customers to pre-register online.
It said London Electricity was the “ideal partner for the deal”, due to its experience in the utilities sector. The energy supplier has more than 3m gas and electricity customers in Britain.
The agreement leaves Virgin to handle marketing, while London Electricity will be responsible for the purchase and distribution of energy to customers.
The move is thought to be the starting point for Virgin’s plan to launch a business which would enable customers to book services including plumbing, painting and decorating via the internet.