Friday, July 17, 2020

News: Robin Hood off target for Rotherham energy scheme

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A troubled energy firm has been outlawed from taking on a new energy switching scheme in Rotherham, meaning that the Council will have to repeat a lengthy procurement process.

Last year, Rotherham Council concluded a procurement exercise in its bid to create a local energy supply offer "to help reduce gas and electricity bills for residents and provide them with a greater level of customer service and fairer treatment to that which they may be receiving from their existing supplier."

Robin Hood Energy (RHE), a national not-for-profit licensed energy provider that is owned by Nottingham City Council, won the two year concession contract

While helping residents with their bills, the contract would also reduce bills for void council properties and was set to generate an income for the Council in the form of referral fees and meter credit.

A cabinet paper shows that the scheme with Robin Hood Energy has not been able to be progressed and a re-tendering of the contract is being asked for approval.

The paper explains that: "Since RHE was awarded the contract a new management team has been enlisted and their business model reviewed and changed. As a result, RHE could not agree to the specification under the terms of the procurement process and so the contract could not be awarded."

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If the Council were to change the contract and terms & conditions to comply with RHE requirements, this would not comply with procurement regulations and could result in a legal challenge from other organisations that considered submitting a bid.

The firm, which has come in for criticism having been bailed out by Nottingham City Council, posted a £23.1m loss for 2018/19.

The report to Cabinet suggests that the scheme would now be open to registrations from April 2021. The scheme would be available to all Rotherham residents and aims to support those with a low household income.

Alongside this, a switching scheme is being proposed to provide immediate support to help residents reduce their energy bills. This scheme will help households understand their bills, compare the market and assist in switching suppliers.

Cllr. Denise Lelliott, cabinet member for jobs and the local economy at Rotherham Council, said: "Fuel poverty still remains a significant issue for lots of our residents. This scheme, once it is up and running, would give us a real opportunity to make a significant difference.

"Although it was disappointing we could not secure a partner last year, our commitment to helping residents reduce their bills and help the environment remains. The process provided a valuable insight into the current energy market which will be used in the revised proposals to better benefit those who take up the scheme."

The Council said that it will not make any financial gain from the scheme, with all benefits of lower tariffs falling to residents.

Images: Robin Hood Energy

1 comments:

Unknown July 18, 2020 at 11:56 AM  

I THINK I CAN INTRODUCE YOU TO A SUITABLE UTILITY COMPANY. WHICH HAS THE HONOUR OF BEING THE BEST CUSTOMER SERVICE AWARD YEAR ON REAR. JOHN B

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