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UK’s council-run Together Energy goes bust amidst rising energy prices

UK’s council-run Together Energy goes bust amidst rising energy prices
UK’s council-run Together Energy goes bust amidst rising energy prices

Together Energy, a residential energy utility based in the United Kingdom, has reportedly become the 27th supplier to collapse over the last year owing to rising energy prices, which are expected to soar by 50% this year.

Warrington Council, which owns a portion of the company, disclosed earlier this week that the firm would cease trading. Under Ofgem's supplier of the last resort procedure, the utility’s 176,000 customers would be switched to a different electricity and gas supplier.

The regulator has assured that affected consumers will not experience any service disruptions, and any outstanding credit amounts will be moved to a new provider.

Together Energy’s downfall comes after the company failed to make a £12.4 million payment to Ofgem, which was due in October. Now, a second payment deadline is approaching this January 22nd, leaving Together no option but to call in that administrators.

The company is the most recent council-run energy provider to go out of business, with Nottingham City Council's Robin Hood Energy entering administration last year in January. Several municipal governments attempted to repair holes in their budgets by investing in commercial property, energy, along with other assets.

Gillian Cooper, head of energy policy at Citizens Advice, stated that Together Energy is the 27th energy provider to go bust since August. Adding that this would further add to the massive £2.6 billion bill UK consumers are already facing owing to the multiple energy supplier failures.

With the cost of living crisis in full-swing and the price cap set to rise again this April, many people are being forced to choose between eating and heating.

Cooper added that the government should spread the cost of energy provider failures so that consumers are not saddled with colossal payments from the energy market turmoil as prices continue to climb. It must also make a one-time payment to persons who are most in need of assistance through the welfare system in April.

Neil Lawrence, Director of Retail at Ofgem, stated that the regulator’s number one objective is to protect the consumers. Ofgem understands that this is a stressful time for many people, and hearing that a supplier is closing can be upsetting.

Ofgem added that it will select a new supplier for the affected customers and while it is doing this, it advised customers to wait until it appoints a new energy supplier; urging them to not switch in the meantime.

Source credit: https://www.independent.co.uk/news/business/together-energy-collapse-gas-prices-b1995505.html

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.