Nottingham City Council to bring Enviroenergy in-house

Councillor David Mellen said the move was the "best way forward"

Nottingham City Council is to bring a cash-strapped energy company that needs £17.5m of investment in-house.

The authority plans to liquidate Enviroenergy, which it has owned since 2001, and take over operations.

It currently provides water and heating to about 5,000 homes and 70 businesses, including the Motorpoint Arena.

The transfer will cost the council about £500,000 and comes a year after the collapse of Robin Hood Energy cost the authority millions.

Leader of the Labour-run council, councillor David Mellen, described the move as "the best way forward" at an executive board meeting on Tuesday.

The Local Democracy Reporting Service (LDRS) reports it was voted through by other Labour councillors.

During the last two decades, Enviroenergy - which has 32 staff and is based in London Road - has been given a number of loans by the council.

Network upgrade

More than £11m of these loans remain unpaid.

The company's outstanding debt will be taken over by the council when Enviroenergy is liquidated.

The council says Enviroenergy has been profitable since 2013, with the exception of 2017.

However, Enviroenergy's company accounts show these profits do not cover its long-term liabilities.

The authority said it needed to spend £17.5m to ensure it can continue to provide services to current customers.

The money will be used to upgrade the heating network - including boilers, meters, pipes and pumps - and the customer billing systems, between 2022 and 2026.

The council said closing down the Enviroenergy heating system was not an option as the complexity of the infrastructure meant its 5,000 customers cannot immediately receive energy from other providers.

After the meeting, councillor Kevin Clarke - opposition leader of Nottingham Independents at the council - said: "The investment needed to bring it up to date is eye-watering."

Earlier this month, the council announced plans to cut two-thirds of its children's centres and 91 jobs to make £28m of savings in its 2022-23 budget.