Nottingham City Council has announced that customers of its energy company, Robin Hood Energy, are to transfer to British Gas.
The purchase agreement with Centrica, the parent company of British Gas, has been reached following a strategic review of Robin Hood Energy launched by the City Council in March.
Leader of the Council, Councillor David Mellen, said: “The review we have been carrying out over the last six months has been comprehensive and considered a range of options for the future of Robin Hood Energy.
“Significant improvements have been made in the financial performance of the business under the new management team the Council appointed last year.
“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”
“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.
“The Council set up Robin Hood Energy back in 2015 in response to the level of fuel poverty in the city and concerns that energy industry was not acting in the best interests of consumers, particularly those who relied on pre-payment meters. The aim was to reduce energy prices in Nottingham and the company achieved this initially.”
Customers do not need to take any action and will be contacted in the coming weeks with more details. No customers will be worse-off as a result of the transfer.
The sale agreement addresses one of the recommendations made by an external auditor in a Report in the Public Interest published last month on the City Council’s governance of Robin Hood Energy. The report recommended that the Council urgently determine the future of Robin Hood Energy with options properly evaluated and risks assessed.
An action plan has been published by the Council which sets out how it will implement other recommendations made in the report and make other improvements in the governance of its companies.
