Nottingham City Council has announced that all the customers of its troubled energy company, Robin Hood Energy, are to be transferred to British Gas.
The deal with British Gas’s parent company Centrica has been reached following a strategic review of Robin Hood Energy launched by the City Council in March.
Robin Hood Energy currently serves around 112,000 residential customers, and 2,600 business customers across 10,000 sites.
Completion of the deal is expected on 16 September with customers moving to British Gas over the next few months.
Robin Hood Energy was set up in 2015 by the local authority with the specific aim of taking on the ‘Big Six’ suppliers.
But a report by Grant Thornton into the governance arrangements at Robin Hood Energy (RHE), which was published last month, highlighted a number of issues at the largest council-owned energy company in the country.
The report said there was ‘an insufficient appreciation within the council’ of the huge risks involved in owning the company.
And it added there was also ‘insufficient understanding within the council of Robin Hood Energy’s financial position’.
In August, Bristol City Council also confirmed it had sold part of its Bristol Energy business to Yü Energy for £1.34m.
‘Significant improvements have been made in the financial performance of the business under the new management team the council appointed last year,’ said council leader, Cllr David Mellen.
‘However, given the current economic climate and the further levels of investment needed to enable the company to compete in an extremely difficult market, the review concluded that a sale was the right option,’ he added.
‘It provides the best possible deal for the council and city residents and reassurance to customers that they are transferring to a large, well established company.
‘We know this is a very sad day for the business and its employees who have played a part in creating a more dynamic and customer orientated market for all energy consumers.
‘The energy market has changed considerably over the last few years. At its peak there have been over 70 energy suppliers competing to win new customers and the introduction of price caps has fundamentally changed the landscape with many smaller suppliers exiting.’
Photo Credit – Ri (Pixabay)