FAMILIES who signed up to a council-owned energy company are being moved over to British Gas after the collapse of a supplier that was keeping it running.

Southend Council teamed up with Robin Hood Energy at the start of the year in an arrangement which meant the company would provide the energy supply for Southend Energy’s 6,000 customers.

But the owner of Robin Hood Energy - Nottingham Council - has announced the company will close from October and British Gas would take on all its customers, including those who are part of Southend Energy.

The announcement has left uncertainty over the future of Southend Energy and the council says it is “considering its options”.

Lib Dem leader Carole Mulroney, who oversees the environment said: “We know this is a very sad day for Robin Hood Energy and its employees, who have played a part in creating a more dynamic and customerorientated market for all energy consumers.

“The energy market has changed considerably over the last few years. At its peak there have been more than 70 energy suppliers competing to win new customers.

“The introduction of price caps by energy regulator Ofgem in 2019 fundamentally changed the landscape, forcing larger energy companies to lower their prices with many smaller suppliers subsequently exiting the energy market.

“The aim was to save Southend residents money on their energy bills and we have achieved this.”

She added that customers will be contacted with details in the coming weeks but they will be “no worse off as a result of the transfer”.

Ms Mulroney did not mention the severe financial issues that had plagued Robin Hood Energy for several years leading it to lose close to £35million since it was formed.

Conservative councillor Tony Cox has called for an investigation into why the deal was done.

He said: “There needs to be an investigation to ask how a company with questionable finances allowed to be given a contract like this.”