COMMENT: The Victory Energy dream has become a nightmare

But the tale of Victory Energy in Portsmouth has ended up more like a nightmare.

We report today how the company set up by the city council is to finally close for good next month, with losses of between £3m and £3.5m.

The scheme was scrapped in 2018, but Victory Energy Supply Limited (Vesl) has limped on ever since - with costs of around £2,000 a month - in the vain hope a buyer could be found.

Now council leader Gerald Vernon-Jackson has announced that no more money is to be spent as 'no-one wants to touch it with a barge pole'.

Selling Vesl became much more difficult once the watchdog Ofgem revoked the firm’s gas and electric supply licences as it did not supply energy in the first year of gaining them.

The company has become something of a political football. Created by a Conservative administration led by Cllr Donna Jones, it was never favoured by the subsequent Lib Dem-run council and Cllr Vernon-Jackson will be glad to see the back of it.

Cllr Jones continues to defend the decision to create Vesl, claiming that some companies had been interested in buying it and accusing Cllr Vernon-Jackson of being 'misleading'.

Whatever the truth, this whole episode has cost the people of Portsmouth dear and they've seen absolutely no benefit.

It could have been much worse though - Cllr Vernon-Jackson says losses of up to £60m have been experienced by other council-run energy firms such as Robin Hood Energy in Nottingham and Bristol Energy.

The lesson here seems to be that local authorities seeking to become energy suppliers in a market still dominated by big players is a very risky business when so much council tax payers' money is involved.