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A new energy company has been set up by London's mayor to provide power for the capital's households.

Sadiq Khan said London Power, a partnership with Octopus Energy, would provide cheaper, greener electricity.

Energy will be from 100% renewable sources to ensure "a better, fairer deal on fuel prices", the mayor said.

But a Green London Assembly member criticised the scheme for being linked to a private company and not being wholly owned by City Hall.

Caroline Russell also called for "an environmentally focused local energy supplier" for the capital's businesses and public bodies.

"The Mayor should also be seriously looking at cleaner, greener energy for TfL which currently uses only 0.01% of its energy from renewables," she added.

Ed Reed, energy expert at Cornwall Insight, said 13 authorities, including Islington and Barking & Dagenham councils, had partnered with energy supplier to form their own power companies.

Mr Khan said the London Power project would help more than a million people who are living in fuel poverty, adding: "I want London Power to give Londoners a better, fairer deal on fuel prices."

City Hall has committed £2.4m towards the £3.8m project.

It said London Power would begin providing electricity to homes from December with any profits to be reinvested into the capital's communities.

The Mayor's office added it expected to save customers about £200 annually.