Enviroenergy: Liquidation 'the next step' for council-run firm

The liquidation of a council-run energy company is due to complete more than a year after it was taken in-house.

Enviroenergy had operated as a separate company, providing heating for around 5,000 homes and 70 businesses including the city's Motorpoint Arena.

A decision was made by Nottingham City Council in 2021 to bring it in-house while the legal entity was liquidated.

At the time, the council said the company had been profitable every year since 2013, apart from 2017.

The Local Democracy Reporting Service said Environenergy was being propped up by numerous loans before being brought in-house, with £11m remaining unpaid as of November 2021.

However, the transfer of assets to the council was completed in December 2021.

The council said this was "in lieu of the debts referenced, to enable the company to be wound-up without residual debt".

Neil McArthur, the interim director of commercial and procurement, said the wind-up was imminent during a meeting on Friday.

Speaking to the Nottingham City Council's audit committee he said: "The liquidation is at hand.

"That will be the next step, the liquidators are pressing the council.

"I can't commit to a date yet."

Enviroenergy saved Nottingham City Council £5m a year by generating renewable energy from waste which would have been sent to landfill.

The council said liquidation was administrative and would not affect the running of the heating network.

Nottingham City Council has begun working to reform how it runs companies on the instructions of an Improvement and Assurance Board.

This was appointed by the Government following the collapse of its firm Robin Hood Energy in 2020.

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