Energy supplier to receive £9.5m loan

Image by Magnascan from Pixabay

Robin Hood Energy is set to receive £9.5 million from Nottingham City Council to cover its green tax bill, according to a report in the Nottingham Post.

The not-for-profit energy firm hit the headlines earlier this month after entering into a dispute with industry regulator Ofgem about its Renewable Obligation Certificates (ROCS) payments.

The council-backed supplier contested Ofgem’s claim that it had failed to pay its multimillion pound tax bill and insisted the regulator had previously been open to a staggered payment plan, only to then demand payment in full by 31 October.

At the time, Robin Hood Energy’s CEO Gail Scholes said: “In August of this year, we wrote to Ofgem and met them in September to discuss making this year’s payment in instalments, as they had previously agreed with other suppliers last year.

“This was a prudent business decision to help us more effectively manage the high demand of the winter period, a potential general election as well as mitigating potential market risks around a no-deal Brexit.

“Despite welcoming our proactive approach and advising that as long as our ROCs (Renewable Obligation Certificates) payment was made by March 2020, which we had always planned to do, then this matter would be resolved. However, Ofgem has now written to us today (1 October 2019) demanding payment in full by 31 October.”

Now, according to the Post, the City Council is set to save the day by loaning the energy supplier enough to cover the outstanding debt. It has stipulated that the funds must be paid back within 6 months.

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