Robin Hood Energy turns a profit for the first time

THE energy company set up by Nottingham City Council made a £200,000 profit last year, according to its latest accounts.

Robin Hood Energy was set up with £20 million in loans from Labour-run city council. The accounts, which were released today show the firm made a profit of £202,000 for the year 2017-18.

The documents say the firm has been independently valued at around £30 million and currently has 115,000 customers.

The not-for-profit company said it planned to invest its profits back into offering a warm-home discount for older people and those on lower incomes. It also plans to get all its energy from renewable sources from the middle of July.

Councillor Steve Battlemuch is chairman of Robin Hood Energy, as well as being the Labour councillor for Wollaton West Ward. He said: “We are pleased to have officially made an operating surplus within three years of trading.

“It’s a big achievement, given that most energy companies take at least five years to get to this stage. As the first publicly-owned not-for-profit energy company, we will use our strengthened position to support vulnerable people tackle fuel poverty and help protect the planet.”

Bosses at the firm say it was a “canny” investment from the city council, which is earning money from interest which RHE pays on the loan at a “commercial rate”.

But critics of the scheme say it has left taxpayers exposed to risk.

William Scott, treasurer of Nottingham Conservatives, said: “What we’re uneasy about is the secrecy with which the council has done this, and the huge financial risk to Nottingham tax payers. There’s £20 million been pumped in, and I’m very sceptical about that £200,000 profit.”