A rapid non-statutory review will be conducted into Nottingham City Council following the collapse of its Robin Hood Energy scheme.
Local government secretary, Robert Jenrick, said the review will investigate serious governance and risk management issues associated with its energy company.
A public interest report published in August found serious failure of the governance at the council since Robin Hood Energy was set up in 2015.
Jenrick said: ‘I have been monitoring the very serious situation at Nottingham City Council closely, including the collapse of their Robin Hood Energy scheme.
’A review such as this is not undertaken lightly – councils have a duty to manage taxpayers’ money responsibly and should be held to account where they are found to have failed to do so.’
A statement from the council said: 'The review will help the council build on the work we have already started since the Summer to reappraise the priorities we have set out in light of the major challenges we face. We welcome good advice and guidance which will help us do better for the people of our city.'