Today is a ‘sad day’ for Robin Hood Energy and its 250 staff, the council has said, after the owners of British Gas confirmed the purchase this morning.
All 250 staff at the council-owned company were told yesterday (Thursday, September 3) that they were being made redundant.
According to the latest information on Companies House, all directors of the company currently remain in position.
All 115,000 customers at the company will now be transferred to British Gas in the coming months, before Robin Hood Energy is formally wound up.
Labour-run Nottingham City Council has not yet revealed the total amount paid by British Gas owners Centrica for the company.
The council’s total liability is £59.6 million, according to a Public Interest Report issued last month.
Only the customer base of the company has been sold.
Councillor David Mellen is the leader of the council, and 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.”
Chris O’Shea is the group chief executive of Centrica, and said: “As well as our actions to simplify and modernise our business, we are focused on returning to profitable growth in our core markets and investing in value generating opportunities.
“Our customers are at the heart of everything we do, and we are delighted to welcome Robin Hood customers to British Gas.
“We are pleased to be able to offer every customer moving to British Gas a tariff which means their price will not be any higher and, importantly, they will be supplied with green electricity and have access to a range of other benefits – such as British Gas Rewards with free energy days and exclusive offers on services such as boiler cover.”