The energy company set up by Bristol City Council is to be sold, after the firm reported millions of pounds of losses.
Bristol Energy was set up in 2015 by the Labour-controlled Bristol council in an effort to reduce fuel poverty in the city.
Robin Hood Energy was also launched in 2015, by Labour-controlled Nottingham City Council.
Both firms have reported significant losses in their years of operation, and both have received financial backing from their respective councils, amid opposition warnings and protestations over a perceived lack of accountability.
Last week, Bristol City Council took the decision to sell the company during a council meeting held behind closed doors.
The current Mayor of Bristol, Marvin Rees said the company has faced unprecedented challenges since being established by his predecessor.
Earlier this year, Bristol City Council commissioned Ernst and Young to conduct a review of Bristol Energy's structure and future business viability.
In March, as Robin Hood Energy reported annual losses of £23.1 million, interim chief executive officer Jeff Whittingham said an external firm had been brought in to provide a review by Summer, and that ‘all options were on the table’.
On the sale of Bristol Energy, the city’s mayor said: “Establishing an energy company was always a high risk for the council, and one which has brought continued challenges.
“The energy market is dominated by well-established far larger energy providers.
“Having inherited a failing company where £15 million had already been spent or earmarked for spend, we were faced with a choice.
“We could have closed the company then or tried to develop a business strategy that would succeed, both in tackling fuel poverty in Bristol and delivering a financial return for the city. This proved to be impossible in such a volatile market place.
“We have tried to work in the best interests of the city and Bristol Energy customers, but been unable to divulge the challenge we were tackling as this would have further disadvantaged us against competitors.”
Nottingham City Council and Robin Hood Energy have been approached for comment.
