OVER 350 jobs are at risk as the a partly publicly owned Scots energy firm became the latest energy supplier to collapse.

Clydebank-based Together Energy, which prides itself in employing more than 90 per cent of its staff from Scotland’s most deprived areas, is now the first casualty of the energy industry in 2022.

In a statement on its website, Together Energy said the "sustained increase in wholesale prices and the securities required to continue to forward purchase the energy", made the firm's situation "untenable".

The energy regulator Ofgem said a new supplier would be found for the company's customers and that energy supply would continue.

Together Energy is said to employ around 360 staff, mainly from some of Scotland's most deprived areas as well as 15 members of staff in Warrington and other staff in Bristol. It had plans last year to recruit another 80 customer service roles, both in Clydebank and Warrington, funded by the Kickstart scheme.

It had been feared the five-year-old energy supplier 50% owned by Warrington Borough Council, with 170,000 customers would face collapse as a last-ditch search for new funding neared its end.

Bulb, the last energy supplier seeking a rescue deal, collapsed in November, leaving 1.7m customers facing higher bills.

Together Energy describes itself as "the most socially responsible recruiter in Scotland" saying that "our commitment and support of people who are from the most vulnerable backgrounds is unprecedented and we continue to work and support staff from the poorest postcodes".

Glasgow Times:

It says it actively recruits from poverty-hit areas identified in the Scottish Index Of Multiple Deprivation.

It has told customers: "We regret to inform you that the company will cease trading with immediate effect. We want to thank you sincerely for your custom over the past five  years.

"Despite press reports, we did buy enough gas and electricity for your needs, but 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.

"On behalf of all staff who have ever worked with the business, we want to thank you from the bottom of our hearts for your custom. Without your custom we could not have delivered on our recruitment policy; we have recruited 90% of our staff from the poorest 10% of postcodes in the UK.

"Your custom has created job opportunities and university places for people who didn’t have the confidence or aspiration. We will all be forever grateful that you chose us to heat your home, and we are sorry we can’t continue to do so."

The firm made a near £4m loss in the year to October, 2020 after a £11.4m deficit the previous year.

A financial record in July stated that the board was of the opinion that it had the "adequate resources to continue its activities for at least 12 months... "

By then Together acquired the residential customer base of Bristol Energy for £14m. In adding 144,239 accounts, the deal effectively doubled the size of the business.

The firm's website had reassured customers as speculation was rife over its future that their "accounts are safe with us".

Ofgem said customers of Together Energy would be contacted by a new firm once it has been selected.

Households have been advised to wait until a new supplier is appointed before thinking about switching company.

Neil Lawrence, director of retail at Ofgem, said the regulator's "number one priority is to protect customers".

"I want to reassure affected customers that they do not need to worry, under our safety net we'll make sure your energy supplies continue."

Together Energy, which has 350,000 accounts, insisted in November that it was "looking to source strategic long-term funding for growth, not short-term [capital]".

Warrington Borough Council initially invested £18m in Together Energy in September 2019, arguing that 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".

Last year, the local authority said that the supplier's organic growth model projected that the company would have 850,000 customer accounts within three years.

The company says that 100% of its electricity comes from renewable sources, and that it is "working towards offsetting 100% of our carbon gas by August 2023".

In March, Warrington Borough Council leader Russ Bowden said  growth figures were “really encouraging.”

At that point the company said it had  seen a 284% increase in its customer accounts over the past two years – growing from 97,000 in 2019 to 280,000.

Glasgow Times:

 Citizens Advice Scotland fair markets spokesmanb Kate Morrison said it was "more bad news for hard pressed consumers'"

"Together Energy will be the twenty seventh company to exit the market since last August, and comes as a record rise to the price cap is expected to be announced in the coming weeks. One in three of us are already finding bills unaffordable and that’s before huge increases in bills alongside soaring inflation."

Andy Carter, Conservative MP for Warrington South, criticised the council who he said "simply should not have made this investment decision".

"Having highlighted this risky investment many times in Parliament over the last two years it was only a matter of time before the inevitable happened," he said.

"Labour's line will be to blame everyone else but it is clear this decision was taken by Labour councillors and they must be held to account for the losses which will inevitably follow."

Mr Carter said he had met ministers and would attempt to "recover as much of the £52m public money invested in this business".

It is feared that energy bills could rise as much as 50% in the spring as the UK faces a “national crisis” over soaring wholesale gas and electricity prices as renewable generation has slumped helped by the lowest Scottish wind speeds of this century.

Nearly three weeks ago, the trade body Energy UK called on the UK government to intervene to help cut the cost of bills amid predictions that the price cap could easily exceed £2,000 a year.

Good Energy and EDF have added their weight to calls for the Government to urgently intervene after the cost of gas in wholesale markets rose by more than 500 per cent in less than a year.

The UK’s price cap on energy bills which stops companies from immediately passing rising costs on to their customers is due to change on April 1 when the industry regulator Ofgem is set to raise the cap dramatically.

While energy wholesale prices continue to climb steeply, the UK’s price cap on energy bills stops companies from immediately passing those costs on to their customers.

Since October 1 the price cap, set by the industry regulator, Ofgem, has been set at a record £1,277.

In Scotland some 1.5m Scots householders saw their energy bills soar by up to £139 in October after the last price cap hike.

Tashema Jackson, energy expert at energyhelpline.com said: "Together Energy has become the 26th energy supplier to go out of business since the start of the energy crisis last summer.

"“Unlike some of those who have already gone under, Together Energy was considered to be a well-run operation and this news will come as a shock to its 176,000 customers.

“If your household is powered by Together Energy, don’t worry, your lights won’t go out and any credit you have on your account will be protected.

“Make sure you grab a meter reading when your new supplier is announced, to ensure the transition is seamless.”

 

Suppliers who have gone out of business since August 2021.

 

Together Energy Retail Ltd

Zog Energy Limited

Entice Energy

Orbit Energy Limited

Neon Reef Limited

Social Energy Supply Ltd

CNG Energy Limited

Omni Energy Limited

MA Energy Limited

Zebra Power Limited

Ampoweruk Ltd

Bluegreen Energy Services Limited

GOTO Energy

Daligas

Pure Planet

Colorado Energy

ENSTROGA

Igloo Energy

Symbio Energy

Avro Energy

Green Supplier Limited ('Green.')

People's Energy

Utility Point

PFP Energy

MoneyPlus Energy

Hub Energy