The Chair of the London Energy Partnership, David Green, and the Chair of the London Energy Partnership Task Group, Michael King, today launched the Making Energy Service Companies (ESCOs) Work: Guidance and Advice on Setting Up and Delivering an Energy Service Company' report at City Hall. The guide was presented in a meeting that was attended by the Deputy Mayor of London Nicky Gavron and Andris Piebalgs, European Energy Commissioner.

Early pioneers of Energy Service Companies experienced a painful climb up the learning curve in identifying the suitable legislative, regulatory and commercial environment that they needed to work in. The launch of this report marks the first time that a document has gathered together all the knowledge in one place as well as giving a helpful overview of Energy Service Companies in the UK and internationally. The Report, prepared by Brodies LLP for the London Energy Partnership, provides guidance and advice on setting up and delivering an energy services company in London.

The Climate Change Action Plan, which was launched last week, detailed the Mayor's aim to move a quarter of London's energy supply off the National Grid and on to more efficient, local energy systems by 2025. The Energy Action Areas and the increased use of Energy Service Companies are key tools in reducing carbon emissions by 60 per cent by 2025 as outlined in the Mayor's Plan.

In 2006 the Mayor announced the London Energy Services Company (the London ESCO), a joint venture company between the London Climate Change Agency and EDF Energy to develop low carbon decentralised energy schemes for London. This is just one example of an ESCO and the report sets out others.

The Mayor of London Ken Livingstone said: "Delivering decentralised energy in London is one of the key aims outlined in my Climate Change Action Plan. I am delighted that the London Energy Partnership, working through the Energy Action Areas, has produced such a useful and comprehensive report, which will help to drive the market for Energy Service Companies in London. Such documents encourage others and provide them with the understanding to begin to deliver sustainable energy in their own communities. The London Energy Service Company stands as a great example for others to follow and London once again is showing by doing".

David Green, Chair of the London Energy Partnership said: "I am delighted to launch this groundbreaking report on behalf of the London Energy Partnership. Through the Energy Action Areas, we are driving the market for Energy Service Companies in London and offering guidance and support to those pioneering decentralised energy in their communities, and working towards a lower carbon London."

Environment Secretary David Miliband said: "The Government recognises that ESCOs offer a useful model for market delivery of energy efficiency and low and zero carbon energy measures and is keen to support their development. I welcome the London Energy Partnership report which is an important and timely resource and will help encourage the development of ESCOs at a community level."

Greenpeace Executive Director John Sauven said: "This report is another positive step forward in realising the decentralised energy vision that represents the real solution to the challenges of climate change and energy security. Energy Service Companies are an integral part of that vision, capable of unlocking immense savings of money and energy, not only in London but across the whole UK economy. This report not only demonstrates how to go about providing energy services that can tackle fuel poverty and community energy bills, but how to slash emissions and lead the way in tackling climate change".