Robin Hood Energy supplier fails to pay £9.5 million in subsidies
Published: 04 Oct 2019

Robin Hood Energy, Nottingham city council's energy supplier, has failed to pass on the £9.5 million in renewable energy subsidies after collecting them from customers through their bills. 

The supplier has already claimed this sum from its customers in order to support renewable energy projects, but in the end, missed their deadline to pay Ofgem, the industry regulator, last month. They have said that the troubled energy supplier could have its energy license revoked if they fail to pay by the end of October. In total, four of the energy suppliers could lose their license if they don't pay a total of £14.7 million to the government's renewable support scheme, including:

  • Delta Gas and Power;
  • Gnergy;
  • Toto Energy;
  • and Robin Hood.

Mary Starks, the executive director of Ofgem, has said that it is "unacceptable" for suppliers to ignore these renewable energy payments, and warned that suppliers, "must meet their obligations, or pay the consequences". This could mean losing their licenses. The Chief Executive of Citizens Advice, Gillian Guy, has said that if the bills are failed to be picked up, then it would be consumers who had to suffer the increase in prices. 

This is not a new problem. Last year, less than half of the initial unpaid renewables obligation was ever paid back. Energy suppliers should not be allowed to build up these levels of debt in the first place,” she has said.

They have asked for the government to develop legislation so that they could bring in companies to make these industry payments more regular. Adding that, "This would limit the cost to customers when suppliers fail to pay or exit the market."

Energy suppliers are being hit with rising costs and a governmental cap on energy prices, which are to fall from the 1st October from an average of £1,254 for gas, and £1,179 in electricity. This is among financial losses in the company, and fears of its collapse. Robin Hood itself has made consecutive losses through the recent years, only receiving a positive gain after getting a loan from Nottingham.