Robin Hood Energy
Robin Hood Energy was a private, limited energy company founded in 2015 in Nottingham, designed with the idea of offering affordable energy to the residents until it, unfortunately, went into liquidation in late 2020. When the energy company ran, over 200 employees were hired, and energy was sold to ten other energy companies and councils and Nottingham City Council. Unfortunately, the formerly successful business did not profit last year and was forced to shut down. If you would like to read more information or learn more about the pricing of business energy, you can do so here.
Robin Hood Energy
Was Robin Hood Energy a Not-For-Profit?
Yes, Robin Hood Energy was a not-for-profit organisation. Its sole aim was to benefit the people it was targeted for and only to further the objectives that the company stood for. These objectives were to provide cheap, renewable energy to the local community and other councils, assuring them that it was within the price range. The money made went back into improving the company, raising more awareness of its ethos and goals, and helping its customers, unlike other energy companies, which can use their revenue to benefit the shareholders.
Whilst the idea of this is advantageous for the community, it can be challenging to receive funds, as the goal of Robin Hood Energy is to keep the energy costs low through donations. When it failed to do this, it cumulatively built up over £34 million of losses and then could not pay the amounts owed to Ofgem. The company was forced to shut down due to unsustainability.
The Switch to British Gas
Customers of Robin Hood Energy were automatically referred to British Gas and the customers of the other companies to which it supplied gas and electricity. This is because of the white label contract, where one company can provide services to another company that can then pass off as their own.
Former customers of Robin Hood energy were made aware of this transfer via a letter and switched to British Gas within a month. Most chose to continue and carry on with British Gas and were made a promise that their tariffs would remain the same or even be lowered. Conversely, if customers researched a separate energy supplier they preferred, this would have to be arranged with them. Furthermore, there are no exit fees because of the unusual circumstance.
As Robin Hood Energy offered fully renewable, sustainable energy to its customer, British Gas ensured that they would do the same. This means that, for example, for every 1 kWh of electricity which a customer uses, British Gas will give 1kWh of renewable energy to the National Grid. Not only is this better for the environment as resources like oil and gas aren’t being depleted or emitting carbon dioxide into the atmosphere, but it is cheaper per unit than non-renewable energy as it costs less to obtain.
What Was the Robin Hood Energy Warm Home Scheme?
Robin Hood Energy entered into the government’s Warm Home Discount Scheme, targeting low-income customers or pensioners to help their costly energy bills. The idea is that the government offers a discount towards this expense, and the money is given to the energy supplier. It is £140 subtracted from your electricity costs.
This initiative benefits two groups of people: the core group for customers who receive pension credit and the broad group for those classified as low-income. After Robin Hood Energy closed down, customers were left panicked; however, British Gas is also one of the energy suppliers involved in the scheme. Therefore, those benefitting from this scheme could continue getting their discount.
Robin Hood Energy provided smart meters for their customers to track their electricity and gas usage and identify any anomalies or areas of excessive energy use. This way, they could make cutbacks and recognise any faulty appliances.
Customers were told that their smart meters would temporarily cease to work after switching to another energy supplier, whether British gas or other. It has been said that smart meters should resume their operations within the following year. But, at this time, British Gas has offered customers to track their energy usage online on their website or mobile app; however, it will not be as accurate. Fortunately, this is only until the smart meters begin to work again.
Robin Hood Energy – To Conclude
Overall, Robin Hood Energy was a brilliant organisation with a selfless ethos to help those who had problems paying their energy bills due to increasing prices. Even though customers had to switch suppliers due to their closure, the initial not-for-profit organisation idea was smart and needed more awareness and donations.
Find out more about switching business energy providers here.
Other useful links about Business Energy
Crown Gas and Power
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