OPPOSITION Tory Cllrs say they will continue to challenge and scrutinise the Labour-controlled council’s controversial investment in Together Energy, after failing in a bid for more transparency at a meeting of the Full Council.
A motion was put to the Full meeting of Warrington Borough Council, calling for a report to the members of the Council and the public of Warrington, outlining the current and future risks associated with the council’s investment in Together Energy.
At the “challenging” Full Council meeting on Monday (Nov 1) Tory Councillors requested complete transparency regarding the WBC’s plans to protect the now £45.3 million potential exposure to the troubled energy business.
A statement from the Labour Leaders of the Council that the company was, performing strongly, were dismissed by Tory spokesperson Cllr Ken Critchley, who said: “In what parallel universe can a company that has lost £23 million before the current energy turmoil be considered to be a company performing strongly”.
Tory Councillors went on to challenge why a further £3.7 million had been lent to the company and who had authorised this additional loan.
Potential exposure to the council, who own 50 pc of Together Energy, now stands at £45.3 million even before the latest revelation regarding the delayed £12.4M Ofgem payment.
The Tory Group was also highly critical of any plans that would see more public money loaned by WBC to the Scottish company, located in Glasgow with over 90% of its workforce based externally to Warrington.
Cllr Ken Critchley
He said the delayed payments to Ofgem of £12.4 million raised the very real prospect that there are “very serious cash flow issues at the company and a huge risk for the Council’s current exposure”.
Cllr Critchley questioned if a cap had been put on further support for the Company, and if more money were lent was there a prospect of getting any of it back?
He concluded: “It’s time that members of this Council know the truth, not the spin, it’s time for the council tax payers and residents of Warrington to know what is really going on and what strategies WBC has other than pouring unlimited amounts of public money into this company!”
Cllr Carol Benson (Con), in support of the motion, commented: ” Energy buying has made people rich and the others bankrupt. Together Energy is a trading company, they rely on forward buying and selling on at a profit. This can be a challenge as the energy market is one of the most volatile which can make money-or lose it. This Labour Council have to now tell the residents of this Borough, how much more support they plan to give Together Energy. At what point will this Labour Council decide enough is enough, energy trading can be a big gamble-would you put your money into such a venture? Unfortunately this Labour Council have done that for you”
The Labour Group, voted en bloc and defeated the Conservative motion.
Cllr Kath Buckley (Group Leader) concluded, “Conservative members of the Council will continue to scrutinise and challenge this Labour Council in relation to its plans for Together Energy.”
A Warrington Borough Council spokesperson said they had nothing to add to their previous statement: “Together Energy is currently facing the same challenges as the rest of the energy sector given the ongoing, challenging market conditions. It is not the council’s obligation to pay this fee – it is the obligation of Together Energy – but we remain reassured that Together Energy continues to fully engage with Ofgem on this matter.
“We continue to monitor the situation, taking external advice throughout.”
2 Comments
This is gonna be £40m+ down the toilet. What a terrible investment so far surrounded in secrecy. It’s our money! At least have the decency to tell us how bad it is before you all resign on your way out.
Together Energy was on its uppers when Russ Bowden’s administration bought a half share in the company for £18 million and then gave it an additional £4 million loan. At the time of WBC’s purchase TE’s auditors had said (paraphrase) without an immediate cash injection it would not be able to continue as a going concern. Since then more money has flowed from WBC to TE, to the extent WBC is now exposed to the tune of £45 million. Why is WBC acting as TE’s bankers?