LONDON Electricity is to go head-to-head with rival Northern Electric in the battle for North-East customers.

The gas and electricity provider, which employs more than 1,000 staff at its customer services centre at Doxford, near Sunderland, is targeting new business in the region.

It is the first time since London Electricity moved to the North-East, in 1995, that it has sought to target local customers by promoting a new low-cost fuel package.

Previous marketing efforts have been limited to customers in London and the South-West.

London Electricity, which claims its combined gas and electricity prices are the lowest in the North, has launched a six-week advertising campaign.

Homes in Sunderland, Newcastle, Darlington and Middlesbrough will receive mail-shots highlighting the fuel package.

Advertisements using slogans such as "It's true, Southerners are a soft touch" and "Get the lowest energy prices in Sunderland - Move to London" will also be used.

A spokesman for Northern Electricsaid they were confident their product was what customers wanted.