Robin Hood currently serves around 112,000 residential customers and 2,600 business customers across 10,000 sites. The collapse of the independent energy provider, which was run by Nottingham City Council, will lead to 230 job cuts.
Centrica said the transaction is expected to complete on September 16, 2020, with customers moving to British Gas over the next few months being offered a tariff at the same or lower price to the one they are currently on.
Robin Hood was set up by Nottingham City Council in 2015 to provide cheaper energy but it turned to be loss-making, the BBC reported. By March 2019 it had lost £34mln despite receiving loans and received criticism for investing £43mln in public money, with £16mln of guarantees.
Shares in Centrica rose 1% to 46.83p early on Friday.