January 20, 2022, 3:31

    Gas and electricity supplier Together Energy ‘facing collapse’ affecting 170,000 homes

    Gas and electricity supplier Together Energy ‘facing collapse’ affecting 170,000 homes

    Together Energy is the latest provider to face collapse as it struggles to find new funding, according to reports.

    The Scottish-based energy firm, which has 170,000 customers, could run out of cash by the end of this month if it cannot find a new source, Sky News reports.

    All of Together Energy's power comes from renewable sources, and 90 percent of its staff come from the 10 percent of poorest postcodes in Scotland.

    The Clydebank-based energy firm is half-owned by Warrington Borough Council.

    Together has been approached for comment.

    A statement on the Together Energy website said: "There's a lot of media speculation surrounding the current challenges in the UK energy market, but Together Energy is stable.

    "There's no need to be concerned and we're very much operating business as usual. There's no risk to your supply or payments and our dedicated employees are here to help when needed."

    Got a money story? Message mirror.money.saving@mirror.co.uk

    Energy firms are buckling under the pressure of rising prices for gas

    Getty Images/iStockphoto)

    Sky said that the chances of Together finding a new source of funding was "remote".

    If it does collapse, Together customers will be taken on by another energy provider.

    Warrington Borough Council invested £18million in Together Energy in September 2019.

    It did so to help tackle climate change, fuel poverty and create new jobs.

    Warrington Borough Council would not comment.

    Dozens of energy firms have gone out of business in the past year due to soaring gas prices.

    A price cap set by the Ofgem energy regulator is stopping these firms from passing on all of the rise to consumers.

    Energy providers say the price cap means they have to sell energy for far less than it costs them to supply.

    Many energy firms have been unable to take the extra strain and have been forced to stop trading .

    The energy price cap limits the amount firms can charge the average customer on their default gas and electricity tariffs – usually variable-rate deals.

    But energy providers are grappling with the soaring cost of gas – which currently costs many times its normal amount.

    Energy firms can't pass all of that cost on to consumers due to the cap. Since October 1 last year that has been £1,277 a year for normal energy use.

    What to do if your energy firm stops trading

    If your energy firm collapses, the advice from Ofgem is to sit tight and wait until your new supplier contacts you.

    You should wait until you know which firm you've been moved to before you decide to look into switching elsewhere .

    In the meantime, take a meter reading for when your new supplier contacts you so it can correctly bill you.

    It is important to check prices as soon as you know which deal you've been moved to, as you may not necessarily be transferred over to the cheapest supplier.

    You won't be charged exit fees for switching away from your new energy provider.

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    Sourse: mirror.co.uk

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