TOWN Hall chiefs at Warrington are to consider the borough council’s investment in Together Energy in the light of the current turbulence in European energy markets.
Officers will seek cabinet approval to enable them to act as required to protect the council’s interests in the company.
A report by deputy leader of the council Cathy Mitchell will be considered partly in open session at the cabinet meeting on Monday, October 11 but partly in private.
The council bought a 50 percent stake in Together Energy for £18 million in October 2019 and loaned the company £4 million, which has since been repaid.
A further £20 million revolving credit facility, currently drawn in full, and an Orsted Guarantee, currently valued at £7.4 million, have been subsequently agreed by cabinet, which brings the council’s current potential exposure to Together Energy to £45.3 million.
The guarantee is currently negated – as is explained in the private section of the report – which means that at the time of writing, the council’s exposure to Together Energy is £38 million.
Cllr Mitchell’s report states that the council invested in Together Energy because of its policy objective to tackle fuel poverty in Warrington. The company employs 300 people, including 20 in Warrington, and is currently recruiting 30 more. But like all energy companies, it is currently experiencing a deteriorating trading position because of high gas prices, resultant energy prices and the price cap.
The report to be considered in private next Monday will include a full risk analysis, the legal implications and the financial implications for the council.