Nottingham City Council has launched the first local authority-owned, not-for-profit energy supply company.
The local authority said the creation of Robin Hood Energy was part of its commitment to provide affordable energy to customers and to help tackle fuel poverty.
It added that:
- As a fully licensed national energy supplier, tariffs were available to customers in England, Wales and Scotland.
- Robin Hood Energy’s directors – who are not paid a salary – and other employees would not receive bonuses and the company had few overheads which would help maintain low tariffs for customers.
- A unique ‘Nottingham tariff’ would only be made available to customers in the City of Nottingham. The company’s other tariffs are: Evergreen (standard variable); and Prime (one year fixed-term).
- The project had been “subject to rigorous and complex industry accreditation procedures that will guarantee the company is compliant with energy market regulations.”
Cllr Alan Clark, Nottingham City Council’s portfolio holder for Energy and Sustainability, said: “The UK’s domestic energy market has been hit with fluctuating Government policies and subsidy cutbacks. In recent years, the cost of utility bills has spiralled as the profit-hungry ‘Big six’ energy companies have exploited their monopoly.
“We have decided to take the bold step of setting up Robin Hood Energy so that energy can be provided to customers across Nottingham and beyond at the lowest possible price, run not-for-profit but for people.”
The council said that it had been forecast that customers who had already switched to Robin Hood Energy (during the controlled market entry phase) from their existing providers could save on average up to £237 per annum on their annual energy bills.
This figure was based on the average savings forecast of all the customers who switched during the controlled market entry phase.