Centrica buys up Robin Hood Energy customers

Centrica plc, through its British Gas business, has agreed to acquire the energy supply customers of Robin Hood Energy Ltd for an undisclosed sum.

Robin Hood Energy currently serves around 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.

Robin Hood Energy posted a £23.1m loss in its April 2018 to March 2019 results published in March 2020. Nottingham City Council – which owns the company – has been looking for ways forwards for the company, which was launched in 2015, including appointing Deloitte to advise the company in May.

But despite changes, the supplier continued to struggle, leading Nottingham City Council to write off £24m of debt in August.

The company had undergone amanagement shakeup in January. Gail Scholes, the chief executive, and Robert Bains, the former managing director, were replaced by David Bird, the ex-managing director of E.On UK and former managing director of Orsted Energy Sales, Jeff Whittingham.

Leader of the council, David Mellen, said that the review the council has been carrying out has been comprehensive, and considered a range of options for the company. But while “significant improvements” have been made in its financial performance following the introduction of new management, it was still deemed best to sell the supplier.

“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 said.

“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.”

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