By Paul Homewood
Another energy company is on the brink:
Together Energy could be the first casualty in the energy industry of 2022, Sky News reports.
It would affect 170,000 customers, leaving households facing price hikes.
The firm, which is 50%-owned by Warrington Borough Council, is said to be looking for emergency funding.
A spokesperson said the company was “in active conversations” about a cash injection.
Together Energy was understood to be looking for funding options back in November.
Sources have now said the chances of it securing funding are “remote”.
The Sun has contacted Together Energy for comment.
Warrington Council said it was unable to comment.
Warrington Borough Council ploughed £18illion into the company in September 2019 to “address the climate emergency, tackle fuel poverty and create new job opportunities for local people”.
Last year, the council predicted the firm would have 850,000 customer accounts within three years.
The business has been on the verge of bankruptcy since before last year’s problems.
Together lost over £15 million in the two years to October 2020, and had a negative book value of £22.7m at that year end:
Worse still, these accounts include intangible assets of £12.6m. Most of this relates to the purchase of Bristol Energy for £14m in September 2020. As such, this is investment is likely to be worthless now.
Together is jointly owned by Warrington Borough Council and Paul Richards, but called up share capital is only £2000, meaning the latter has little to lose. Warrington Borough however have £17.2m of preference shares at stake (shown as long term creditors), which is highly likely to be written off completely if the company folds.
What we do know is that OFGEM have already commenced action against Together for failure to discharge its obligations to to submit ROCs. This is often the first warning sign, and means that the company has been unable to buy sufficient ROCs under the scheme.
The company’s only chance is a government bailout, but in my view this would be out of order because the company has never been viable.
As the Sun notes, Warrington Borough ploughed this money in “to address the climate emergency”. I’m sure its council tax payers will be delighted!
Together Energy boast that all of their electricity comes from wind, solar and hydro:
This is all very puzzling, because the Professor Grubbs and the rest of the renewable lobby keep telling us that renewable energy is much cheaper than nasty fossil fuels.
Surely then they should be immune from the rising price of gas, which has been pushing up costs for other electricity suppliers?
via Not a lot of people know that
JANUARY 6, 2022