Robin Hood Energy: Provider of Islington's Angelic Energy lent £9.5m by Nottingham City Council to avoid losing licence
PUBLISHED: 13:02 24 October 2019 | UPDATED: 13:10 24 October 2019
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The supplier of Islington's not-for-profit Angelic Energy has been bailed out to the tune of £9.5million.
Robin Hood Energy has taken the loan from a council representing the "poorest" city in the UK, according to government data disputed by the authority.
Nottingham City Council has given Robin Hood - which it owns outright - six months to pay it back, saving the troubled firm from the threat of licence revocation.
Islington Council said earlier this month that, in the unlikely event Robin Hood went bust, Angelic service users and tax payers in the borough wouldn't be affected.
Robin Hood chief exec Gail Scholes said: "We have agreed an arrangement with Nottingham City Council which will see us paying our renewable obligations certificate (ROCs) payment in full by the October deadline.
"The arrangement will see us paying our shareholder back over the next six months with interest."
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Industry regulator Ofgem said Robin Hood missed a September 1 deadline to pay £9,435,925 in green subsides, which it had already collected from among its 130,000 customers.
Ofgem gave Robin Hood until Thursday next week to pay back its shortfall in ROCs (like green energy taxes), or face possibly losing its licence.
Earlier this month, Ofgem's executive director of consumers and markets Mary Starks said: "This enforcement action sends a strong signal that suppliers must meet their obligations, or pay the consequences which could mean losing their licence."
Ofgem is unable to comment further at present, but will be publishing a statement confirming firms it's making final orders against next week. It will confirm which firms have paid at the beginning of next month. Robin Hood is one of four firms owing £14.7m in total.
Nottingham City Council chiefs reportedly convened in private on Tuesday, owing to commercial sensitivity, before backing the bail out.
A spokesperson said: "Our executive board has agreed to provide assistance to RHE to enable it to make its renewable obligations in line with the Ofgem requirements.
"This will be repaid by the end of this financial year at a state aid compliant rate of interest."
Both Robin Hood and Angelic were founded to take on the monopoly of the "big six" energy providers - the former has only brought renewable energy since July 2018.