British Gas has been appointed as the Supplier of Last Resort (SoLR) for the 176,000 customers of Together Energy, the company has announced.
Clydebank-based Together Energy, which included its subsidiary Bristol Energy, became the first supplier of 2022 to exit the market last week.
The move marks the ninth time in a year that British Gas has become a SoLR, taking on around 700,000 customers in the last 12 months alone.
Since the start of 2021, British Gas has also taken on the customers of Simplicity Energy, PfP Energy, MoneyPlus Energy, People’s Energy, Zebra Power, Bluegreen Energy Services, Neon Reef and Social Energy Supply.
Centrica chief executive Chris O’Shea said: “The actions we have taken over the past couple of years mean Centrica is in a robust financial position, and as a responsible energy supplier built on a sustainable model we are well hedged for the winter and beyond.
“We have now stepped in to help around 700,000 customers who have found themselves without a supplier over the past year, and we’ll continue to engage with the government and Ofgem to find ways to help stabilise and support the sector.”
British Gas will also take on Together Energy’s one non-domestic customer.
In a statement posted on its website, Together Energy, which was 50%-owned by Warrington Borough Council, said: “We regret to inform you that the company will cease trading with immediate effect. We want to thank you sincerely for your custom over the past five years.
“Despite press reports, we did buy enough gas and electricity for your needs, but the sustained increase in wholesale prices and the securities required to continue to forward purchase the energy, have meant that it is untenable for us to continue.”
Earlier this month, Balancing and Settlement Code (BSC) administrator Elexon announced it would, subject to approval, expel the retailer from the BSC after it failed to reduce its credit cover percentage.
In addition to being in credit default, the disruptor brand was last year revealed by the energy regulator to owe more than £12.4 million in Renewables Obligation payments.
In November, the company started working with advisers Alvarez and Marsal to raise additional capital.
Following the £18 million backing of Warrington Borough Council in 2019, Together Energy joined a small number of municipal-owned suppliers in the market.
Bristol Energy’s customers and brand were acquired by Together in 2020 for £14 million, while Nottingham City Council-backed Robin Hood Energy’s customers were bought by Centrica in early 2020.
Following spiralling wholesale energy costs, 2021 was a record year for energy supplier failures. In total 27 retailers exited the market via the Supplier of Last Resort process, while Bulb became the first ever retailer to enter the Special Administration Regime.