Local authorities could compete with energy suppliers to sell cheap energy under new government proposals.
Under the plans, councils would be allowed to sell electricity generated by renewable sources.
Councils are not allowed to sell electricity under the existing regulatory regime but an ongoing consultation is trying to determine how local authorities can play their part in the development of renewable heat and electricity.
The consultation looks at some of the issues local authorities will need to consider if they want to sell cheap energy.
According to the Department of Energy and Climate Change, allowing local authorities to sell electricity generated by renewable sources would encourage the development of local cheap energy projects.
The move is aimed at encouraging councils to play their part in tackling the challenges presented by climate change and meeting their commitment to sustainability.
Any changes are expected to be enacted through secondary legislation by the Department of Energy and Climate Change and the Welsh Assembly government.
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