Doomed Portsmouth council-owned Victory Energy to finally close next month after £3.5m loss
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The leader of Portsmouth City Council revealed Victory Energy will cease to run following lack of buyers.
Victory Energy Supply Limited (Vesl) was set up under the Conservative administration led by Councillor Donna Jones before being scrapped by the Lib Dem-run council in November 2018.
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Hide AdSince then it has continued to operate at a cost of around £2,000 a month as directors hoped the firm could be sold.
However, during a passionate full council debate on Tuesday night, leader Cllr Gerald Vernon-Jackson said: ‘I'm disappointed the council has been stuck paying money to keep the almost lifeless body of Vesl still going.
‘It is the intention that no more money will be spent on it after this month.
‘No one's wanted to touch it with a barge pole, we could not even get a tenner for it. We have to draw the line and say that's it now.
‘It has incurred between £3m and £3.5m in losses.’
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Hide AdHe also said the council was ‘lucky’ to avoid losses of up to £60m as had been experienced by other council-run energy firms such as Robin Hood Energy and Bristol Energy.
But former leader Cllr Jones claimed Cllr Vernon-Jackson was being ‘misleading’. She said: ‘Previously companies had been interested. He said no private sector companies were interested which is misleading.’
She added: ‘The leader of the council has misled the council for the sixth time today by saying it won't make a profit.’
Deputy leader of the Tories, Cllr Luke Stubbs, questioned why the firm had continued to operate. He said: ‘Why have you continued to keep it running and spent all that money?’
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Hide AdCllr Vernon-Jackson said: ‘We wanted to keep running it for the maximum time to give someone a chance to come forward.’
But he said no one wanted to pay cash for it, and only ‘non-profitable’ shares were offered.
As reported, sector watchdog Ofgem revoked the firm’s gas and electric supply licences as it did not supply energy in the first year of gaining a licence.
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