Together Energy: Calls for transparency over council energy deal
- Published
Warrington Borough Council bought a 50% stake in Together Energy
Calls have been made for a council to reveal full details of its investment in an energy company, as the sector continues to face high gas prices.
Warrington Borough Council bought a 50% stake in Together Energy for £18m in 2019 and lent it a further £20m.
The Conservative group on the Labour-run council has called for "complete transparency" in the authority's dealings with the company.
Warrington Borough Council said it was reviewing the matter.
Energy suppliers have been hit by a sharp rise in wholesale gas prices this year, with three companies folding in the past week alone.
Councillors speaking in a recent meeting said the investment was "as good as it can be in the circumstances".
Deputy leader Cathy Mitchell said the company was run by "industry professionals not councils or well-meaning amateurs", citing the council-run Bristol Energy, which cost residents millions and was bought by Together Energy in 2020.
Councillors backed plans to proceed with options in relation to the investment but have not publicly said what those options are as the details were set out in a private section of the meeting.
The council's Conservative group has called for more information to be made public.
Councillor Ken Critchley said: "The time has come for complete transparency regarding the council's strategy in relation to Together Energy."
A spokesman for the council said it was aware of the energy price situation and "it is only right we continue to review our investment, as with all other investments we make".
He added: "In the turbulent energy price market, with external advice, we are considering a range of options.
"However, Together Energy has adopted a prudent hedging and energy purchasing strategy and is nationally one of the leading companies in energy demand forecasting."
According to Together Energy's latest financial results, the company made a pre-tax loss of £4.2m for the year to 31 October 2020 - a reduction compared with losses of £12.3m in the previous year.
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