Martin Ford 18 January 2022

Council-backed energy firm collapses

Council-backed energy firm collapses image
Image: Marian Weyo / Shutterstock.com

Together Energy has announced today it has ceased trading, exposing Labour-led Warrington Council to heavy financial losses.

The council has a 50% stake in the energy company, with potential liabilities standing at more than £50m, according to opposition councillors’ estimates.

Conservative councillor Ken Critchley said ‘The Conservative group has been consistent and vocal in its opposition to the high-risk, high borrowing strategy of the Labour-led council.

‘It’s the taxpayers and residents of Warrington who are going to bear the consequences of this ill-judged investment.’

Together Energy became the latest in a string of firms within the sector to collapse after its bid to secure external investment failed.

Warrington paid £18m to acquire a 50% share in Together Energy in 2019.

A council spokesperson said it was ‘very disappointed’ at the news, but that the company’s operating model was ‘resilient’ and approach to hedging ‘extremely robust’.

They added: ‘While it is our absolute priority to minimise any and all exposures we have as a council, we must first, as a priority, ensure that the independent administration process completes in a timely manner, and that Together Energy’s customers are seamlessly transferred to another provider.’

A statement released by the company this afternoon read: ‘The sustained increase in wholesale prices and the securities required to continue to forward purchase the energy have meant that it is untenable for us to continue.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of People

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. County hall
Recuriter: Lancashire County Council

Director of Strategy and Transformation

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. Preston, Lancashire
Recuriter: Lancashire County Council

Care and Support Assistant -Longlands

West Northamptonshire Council
13.52ph
About the role We are looking for a dedicated Care and Support Worker to join our team at Longlands Care Home in Daventry. In this rewarding role, you will provide compassionate, person-centred care to older people and those living with dementia, includin Daventry
Recuriter: West Northamptonshire Council

Highway Design and Construction Manager

Bolton Council
Grade N, scp50 £62,443 to scp53 £65,663 per annum, plus essential car user allowance
We embrace AI to enhance our operations and to innovate our services. Bolton, Greater Manchester
Recuriter: Bolton Council

Social Worker - Huddersfield Royal Infirmary

Kirklees Metropolitan Council
£38,220 - £40,777
Looking to appoint as a Level 2 or Level 3 Social Worker. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner