SOUTHAMPTON civic chiefs are preparing to do battle with the county’s biggest energy firms when they launch their own gas and electricity company later this year, the Echo can reveal.

City council-backed ‘CitizEn Energy’ will provide Southampton residents with “competitively priced” power, say civic bosses.

They hope the not-for-profit firm could even help lift some of the city’s 10,000 poorest residents out of fuel poverty.

But the scheme has come under fire from the Taxpayers’ Alliance, who branded it as“ludicrous”.

Campaigner manager, James Price, said he had “absolutely no confidence” in the council’s ability to out muscle the country’s top energy firms.

He added: “Councils have no business founding an energy company with tax payers’ money.

“Profits are not high in the energy sector, and most of the problem with costs is because people don’t switch as often as they should.”

The city council’s Conservative opposition leader, Jeremy Moulton, also opposed the idea.

He said: “I’m extremely sceptical about it.

“I would be very surprised if the council was able to compete with huge energy firms which dominate that market.”

In order to provide the power, the council will team up with Nottingham City Council’s company, Robin Hood Energy.

The not-for-profit energy company was launched by the Midlands-based authority in September 2015 as a competitor to the 'Big Six' energy suppliers.

The company operates as both an energy generator and supplier – buying its power from the wholesale market.

Southampton City Council say because CitizEn Energy will be a not-for-profit company, it will allow them to provide “competitive” prices for its customers.

Any profits from the company, due to be launched in summer, will be ploughed into energy saving initiatives in the city, say civic chiefs.

Cabinet Member for Sustainable Living, Councillor Christopher Hammond, said, “We are committed to improving the health and quality of life for our residents, particularly the 10,000 of whom are thought to be living in fuel poverty.

“We are excited to be launching CitizEn Energy later this year, which aims to provide fair energy prices and a real alternative to the big energy companies.”

Chairman of Robin Hood Energy, councillor Steve Battlemuch, said: “We are delighted to have been chosen as the energy supply partner by Southampton City Council for CitizEn Energy.

“Together, our focus will be on competitive tariffs, responsive customer service and innovation in how we support the most vulnerable customers.”

No local jobs will be created, with the company’s customer call centre based in Nottingham.