WARRINGTON Borough Council is “carefully monitoring” the situation but remains satisfied the non-payment of a £12.5m Renewables Obligations by energy provider Together Energy, is “in the best interest of the company.”
Energy regulator Ofgem has ordered the Warrington-based, 50 per cent council-owned, Together Energy, to repay nearly £12.5m in unpaid Renewables Obligations, or face the prospect of having its licence revoked.
The fee was due to be paid in full yesterday, Sunday, October 31.
A Warrington Borough Council spokesperson said: “The council, as a shareholder of Together Energy, has been reassured that the board of Together Energy is satisfied that the company is financially stable and solvent.
“However, like all energy suppliers given the challenging current market conditions, Together Energy is having to make difficult decisions – and the decision to delay this payment to Ofgem is one of them. Whilst it is not the council’s obligation to pay this fee – it is the obligation of Together Energy – we are satisfied that not currently making this payment is in the best interest of the company at this time.
“We are assured that Together Energy is continuing to fully engage with Ofgem on this matter. Equally, we are carefully monitoring this situation ourselves, taking guidance from external advisers throughout.”
Energy regulator Ofgem ordered the Warrington-based, 50 per cent council-owned, Together Energy, to repay nearly £12.5m in unpaid Renewables Obligations, or face the prospect of having its licence revoked. The fee was due to be paid in full yesterday, Sunday, October 31.
Together Energy, which has offices in Warrington was one of seven suppliers ordered to pay £17.9m in unpaid Renewables Obligations payments.
The company has responded saying the business has fully engaged with the regulator, remains solvent and viable and is well-positioned to put the late payment right.
A spokesperson for Ofgem said: “Following any non-payment, each supplier will be considered on a case-by-case basis and further enforcement action will be taken as appropriate, which could result in a supplier having its licence revoked.”
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Why are the ratepayers not being told how their money is being spent and why are the accounts for the last 4 years still outstanding. Can you imagine as a normal business person not to submit accounts yearly to HMIT – you would have been fined by now!