Statement: 9 August 2022
We have been advised by the administrators that, based on the current information, they anticipate that our loans of £18.85million will be repaid in full and there should be no call under the guarantee to Orsted.
It is important to allow the administrators to complete their work to ensure the maximum returns for all of the company’s creditors. We await the final outcome of the administration process to determine the final position. We have, however, put in place measures to mitigate this maximum potential exposure, which has been budgeted for, and there should be no further impact on Warrington residents.
Statement: 1 April 2022
Leader of the Council, Cllr Russ Bowden, said: “The administrator’s initial report shows that the council is expected to get back all of its loans to Together Energy and, equally, that the guarantee with our energy wholesaler will not require funding from the council to resolve.
“We now need to allow the administrators to complete their work to ensure the maximum returns for all of the company’s creditors. Whilst we cannot currently confirm how much we will ultimately receive back, we know with certainty that previous speculation about the council facing a loss of £52 million is inaccurate.”
Statement: 9 February 2022
Allan Kelly, Steve Ross and Michelle Elliot, partners at specialist business advisory firm FRP, have been appointed as joint administrators of Together Energy Limited.
This follows Together Energy ceasing to trade in January 2022, due to the enormous increase in wholesale energy costs which are severely impacting the energy market, and which has seen almost 30 energy providers cease trading.
The industry regulator, Ofgem, began a Supplier of Last Resort (SoLR) process and appointed British Gas as the new supplier for Together Energy customers. The SoLR process is there to ensure that customers who are affected by an energy company’s closure are guaranteed continued energy supply.
We know and understand that this continues to be an uncertain time for Together Energy’s customers, their staff and our residents. Whilst we are unable to comment further at this time, we will be working closely with the Joint Administrators to help the administration process proceed as quickly as possible.
Statement: 18 January 2022
We’re very disappointed that Together Energy will be ceasing to trade due to the current energy crisis, which has already resulted in the closure of several energy companies.
Our vision was to be part of a company that tackles the climate emergency by delivering 100% green energy to customers, contributes to reducing fuel poverty and provides local jobs in Warrington – particularly for those out of work or without formal qualifications - but the current market conditions are sadly not sustainable.
We know that Together Energy’s operating model was resilient and our approach to hedging - the process of purchasing energy in a way that minimises the effects of the volatility of the wholesale energy market - was extremely robust, but the enormous and sustained wholesale price rises mean that it is now one of many companies that has had to leave the market.
We know this will be a difficult time for Together Energy customers and staff. We also know that Together Energy’s closure will have an impact on our residents. 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.
Further information for customers
If you are affected by Together Energy ceasing to trade, please visit their website, and the British Gas website, which contains information on the next steps.