Robin Hood Energy conerns in the Nottingham press

Robin Hood Energy, the energy supplier owned by Nottingham city council, has failed to pass on £9.5m in renewable energy subsidies after collecting them from customers through their bills.

https://www.theguardian.com/business/2019/oct/01/nottingham-based-energy-supplier-robin-hood-fails-to-pay-95m-in-subsidies

Looks like TOTO Energy will be going bust as well shortly - they owe £4.5m as well - they have delayed reporting their accounts twice this year through accounting tricks by lengthening and then shortening their year end. Judging by the large number of people waiting for credit balance refunds they won't have the cash to pay this.

"The Authority has engaged with TOTO Energy Limited and invited it to explain the
reason(s) for its non-payment, and to provide robust assurances to the Authority that it
will be in a position to make the necessary payment by the late payment deadline of 31
October 2019. TOTO Energy Limited has failed to provide the Authority with such
assurances and accordingly the Authority is satisfied that TOTO Energy Limited is likely
to contravene the requirements of the ROO and/or the ROS."

https://www.ofgem.gov.uk/system/files/docs/2019/10/toto_-_notice_of_proposed_fo.pdf

Apparently Robin Hood previously asked Ofgem if they can pay their ROCs installments. Ofgem said as long as it's all in by March 2020 then that wouldn't be a problem.

Would be interesting to know if Robin Hood mis-remember this conversation or if Ofgem have now had a change of heart.

With 10 white labels, 9 being owned by councils, it would be interesting to see what the fallout would be from Robin Hood exiting the market.

Toto I think have been told they need to pay Solarplicity's ROCs for the 45k customers they bought... Don't think anyone would miss them when they finally go.

An article this week in Private Eye regarding Bristol Energy, in a similar vein to the goings on with RHE. Bristol City Council have provided £9m to keep it going - making a running total of almost £38m they have "invested"

Bristol Energy is running at a loss of £10m a year, and is forecast to not turn a profit "for at least 5 years"

Bristol council tax payers have seen all but two (two!) public toilets closed in the city, to save £400k a year.

There is already a major supplier HQ'd in the city in OVO, who themselves struggle to make a profit, although apparently they are pretty close and on a surer footing. Ecotricity and Good Energy are also nearby, and make a profit, assisted in part by their upstream activities.

It is becoming clear that it is almost impossible to turn a profit as a purely retail energy supplier. Should we ban councils from taking part in this folly?