Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Local authority definition

What does Local authority mean? In legal practice, a local authority is the elected council that provides local government for a defined area, exercising statutory functions including planning, housing, social care, education, highways, environmental health, licensing, and the collection of council tax or rates. The expression appears widely in legislation and case law; its precise scope is set by the relevant statute. England: county councils and district councils (including metropolitan boroughs), unitary authorities, London Boroughs and the Common Council of the City of London; parish and town councils are local authorities at the most local tier. Wales: unitary county and county borough councils. Scotland: the...

Local authority ESCos: structuring, supply models (full licence, white label, Licence Lite), corporate vehicles, governance, risk, and compliance with the Procurement Act 2023 and Subsidy Control Act 2022

Published by a LexisNexis Energy expert

Practice notes

Why establish an Energy Service Company (ESCo)?

Before creating an ESCo, determine precisely what it is meant to achieve and whether a Special purpose vehicle is warranted in the circumstances. For a general overview of what ESCos are, why they appeal to local authorities, and the issues that Local authority ESCos have faced, see Practice Note: ESCo’s: their role in local authority projects. A local authority pursuing renewable generation—for instance, solar PV—may not require a company to do so; in many cases, constructing and operating the asset on the Authority’s own balance sheet is preferable. The same applies where a local authority sells power from renewables through private wire arrangements. Of the three pillars of the energy landscape (generation, distribution and supply), supply usually presents the strongest case for a distinct legal entity. Where a local authority plans to provide heat, electricity and/or gas to customers, an ESCo will be necessary.

Choice of vehicle—wholly owned or joint venture?

When setting up an ESCo, a local authority will need to decide...

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Web page updated on 21/05/2026

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