“Council should be helping energy company through crisis” say Lib Dems

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WARRINGTON Borough Council should be working with troubled energy company Together Energy to help it through the current crisis in the industry.

That’s the view of the Liberal Democrat Group on the council – even though they have always opposed the council’s controversial investment in the company. They say they sincerely hope the company survives the crisis.

But they believe the council should be taking swifter action on the appointment of qualified independent members on the company’s board to safeguard its interests.
Liberal Democrat finance spokesman Cllr Ian Marks said: “It should also take more care over its communications with the public over its commercial activities. In the past it has not done itself any favours with a lack of openness and transparency.”

The Liberal Democrats did not support a recent unsuccessful bid by the Conservative group to persuade the controlling Labour group to agree to a new, detailed report on the council’s involvement with the company.

Cllr Marks said: “We cannot believe that any other company would be prepared to disclose all the financial information requested by the Tories and we cannot see what positive outcome would result from this disclosure.

“Right now, the council’s efforts should be concentrated on working with the company to help it through the crisis.

“Right from the start we have always opposed this investment. We believe that energy companies are outside the expertise of councils and experience with them at Bristol, Nottingham and Portsmouth councils has been bad.

“The council always tells me that Together Energy is different but we are not convinced it is a sound  investment. We welcome its policy of employing disadvantaged people but this does not mean the investment risk is worth taking.

“The collapse of many national energy companies just confirms our belief.

“Together Energy’s failure to meet deadlines on the £12m plus payment of Renewables Obligations does not bode well. Neither were we impressed by its assertion a few weeks ago that a loss was really a profit. Together Energy has issued a statement telling its customers not to worry and we sincerely hope the company survives the present crisis.”

Meanwhile, Ofgem has this week appointed five suppliers to take over the energy supply for customers of six companies that have recently exited the market.

The suppliers will take on a total of 70,600 domestic and non-domestic customers.

Pozitive Energy will take on customers of CNG Energy and CNG Electricity, which supply 41,000 non-domestic customers. For more information customers can visit: https://pozitive.energy/CNG

SmartestEnergy will take on customers of MA Energy, which supplies 300 non-domestic customers. For more information customers can visit smartestenergy.com

Utilita will take on customers of Omni Energy, which supplies 6,000 domestic pre-payment customers. For more information customers can visit https://utilita.co.uk/help/omni-energy

British Gas will take on customers of Bluegreen Energy which supplies 5,900 domestic customers, along with a small number of non-domestic customers, and Zebra Power, which supplies 14,800 domestic customers. For more information zebra customers can visit https://www.britishgas.co.uk/solr/zebra.html or for Bluegreen customers it’s: https://www.britishgas.co.uk/solr/bluegreen-energy.html

Yü Energy will take on customers of Ampower, which supplies 600 domestic and 2000 non-domestic customers. For more information customers visit yuenergy.co.uk

The appointments follow a competitive process run by Ofgem to get the best deal possible for consumers. Energy supplies will continue as normal after they are switched over to their new suppliers.

Funds that current and former domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap with their new supplier.

Customers whose suppliers have ceased trading will be contacted over the coming days about the changes. If customers wish to switch supplier, they can shop around but are advised to wait until the transfer has been completed. Customers will not be charged exit fees if they decide to switch to another supplier.

Neil Lawrence, Ofgem’s director of retail, said: “I am pleased to announce we have appointed new suppliers for these customers. We understand that this news may be unsettling for customers, however they do not need to worry. Their energy supply will continue as normal, and domestic customer credit balances as well as some non-domestic credit balances, will be honoured.

“Your energy supply will not be interrupted, and your newly appointed supplier will be in contact with customers over the coming days with further information. If customers wish to switch suppliers they can shop around if they wish, but they are advised to wait until the transfer has been completed.”

Tories fail in bid to seek more transparency over council investment in Together Energy

 


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  1. I suspect most of us hope TE survive the crisis, after all we’re all on the hook for an increased Council Tax if it doesn’t. Neither I suspect does anyone really argue that WBC shouldn’t work with TE to help it through the crisis.

    The question is how is ‘working with’ to be defined? Does it extend to direct financial assistance of the sort TE will be requesting in January given Paul Richard has already told the BBC he’ll be looking for more investment. And if so are the LD’s suggesting other struggling companies should equally be supported with direct financial assistance as well, and if so what criteria would they use for authorising such assistance?

  2. Not sure I agree Richard.
    It is a permanent growing liability, not an asset.
    Technically insolvent now actually insolvent.
    The sooner it folds the less it will cost.
    The risk is the muppets will put more in before it collapses anyway.

    The other benefit – wbc will have to confront the fact they should never have got involved.
    So be more risk averse now on,
    Broomhead should not survive the collapse. ( Nor should Mitchell).
    We can only hope he is fired, as he would be anywhere else.
    They know nothing about business.

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