Two more councils have joined forces with Nottingham City Council’s standalone gas and electricity company to offer cheap energy to their residents.

Doncaster Metropolitan Borough Council and London Borough of Islington have signed “white label” deals with Robin Hood Energy to provide energy that will be sold under local branding.

They join councils in Derby, Liverpool and Leeds, which have already come to white label arrangements with the trading company.

Speaking to Room151, councillor Steve Battlemuch, chair of the Robin Hood Energy board, said: “We have talked to a number of local authorities about our company, including the difficulties and time that getting a license to supply energy takes.

“Some of these asked us to supply the energy under their own local brand names.”

Robin Hood Energy will sell the energy to local authorities at cost price with a small premium to cover costs of administration, Battlemuch said.

Robin Hood was launched in 2015 with a loan from Nottingham City Council, which is the only shareholder.

Battlemuch said that the company operates on a not-for-profit basis, but could eventually provide a return to the council.

He said: “We have a plan to break even and pay off the loan within five years and we are currently on track with the number of customers we need to do that.

“The bigger we get, the lower the overall cost of energy becomes.

“I would say generating a return to the council is a medium to long-term aim. We are not at that point yet—we are looking to establish the company in the market and our number one aim is to reduce the cost of energy for our customers.”

Claudia Webbe, Islington Council’s executive member for environment and transport, said: “With Angelic Energy, Islington is leading by example in London, taking practical steps to drive down fuel poverty and encouraging people to make the big switch.”

Doncaster Mayor Ros Jones said: “Reducing the cost of living for people has long been a priority of mine so this is our opportunity to ensure that the people of Doncaster are getting a fair deal on gas and electricity.”

Bristol City Council is the only other council to have created its own energy company, but has yet to white label energy for other authorities.

Earlier this month, at the Scottish National Party annual conference, Scottish first minster Nicola Sturgeon confirmed plans to set up a publicly-owned energy company north of the border.

Battlemuch said: “We would say to the Scottish Government—if you want to talk to us we can talk to you about white labelling. If they chose to go alone then we wish them the best of luck.”

Energy: the next great opportunity for local government

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