Around 250 jobs will be lost when Nottingham City Council's failed energy company is sold to the owners of British Gas.
The sale of Robin Hood Energy to British Gas has been been officially confirmed, with Nottingham City Council's leader describing it as a ‘sad day’ for the firm.
The company was founded in 2015 to challenge the so called ‘Big Six’ energy firms, which includes British Gas. However, 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.
Councillor David Mellen, leader of the city council, 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."
“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.”
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. It includes 112,000 residential customers, and 2,600 business customers across 10,000 sites.
Completion of the transaction is expected on 16 September with customers moving to British Gas over the next few months.
All 250 staff at the council-owned company were told on Thursday, September 3, they were being made redundant.