Council-backed energy company could collapse within weeks
An energy company which Warrington Borough Council has invested at least £18m in, could be close to collapse.
Together Energy, located in Clydebank, Glasgow, could cease trading within weeks if it fails to find fresh funding.
Warrington Borough Council invested £18m in Together Energy in September 2019, for a 50% stake in the business.
It said the partnership was “an important part of the council’s work to address the climate emergency, tackle fuel poverty and create new job opportunities for local people”.
Together Energy currently supplies 170,000 customers, but last year, the council said the company’s organic growth model indicated it could have 850,000 customer accounts within three years.
The supplier is one of several UK energy firms that have been affected by rising energy prices. A report by Sky News claims it is likely to run out of money later this month without new funding sources.
It is believed Warrington Borough Council has ruled out providing further financial backing.
If Together Energy does collapse, with the loss of around 250 jobs, it would be the 26th energy supplier to fail since last August when a spike in wholesale prices hit firms, who are constrained by the industry price cap.
Professional services firm, Alvarez & Martin, has been trying to secure new funding for the energy supplier, and a spokeswoman said it was “still in active conversations”.
But Sky said sources claim it was close to concluding its bid to find fresh funds.
Together Energy customers would be placed into watchdog Ofgem’s Supplier of Last Resort scheme, if it does cease trading.
A Warrington Borough Council spokesperson said: “We are unable to comment at this time.”