Nottingham City Council to liquidate in-house energy supplier

Nottingham City Council has confirmed its intention to dissolve Enviroenergy, transferring its outstanding debt to taxpayers.

The energy supplier was initially established as a distinct entity to supply heating to approximately 5,000 homes and 70 businesses, including the Motorpoint Arena.

In November of last year, the council opted to integrate its services directly, leading to the imminent winding up of the legal entity and the assumption of its debts by the council.

Enviroenergy relied on numerous loans, accumulating an outstanding debt of £11m as of November 2011, before being brought in-house.

The current amount of the unpaid debt has not been disclosed by the council.

The network is 50 years old and requires a multimillion-pound investment to continue serving customers.

The choice to internalise the business was made in 2021, leading to the planned liquidation of the legal entity Enviroenergy Ltd.

The council noted that Enviroenergy has been profitable every year since 2013, apart from 2017.

This adjustment aligns with the council’s reforming of how it runs companies on the instructions of an Improvement and Assurance Board, which was appointed by the Government to oversee change following the collapse of Robin Hood Energy.