Together Energy has become the first supplier of 2022 to cease trading following weeks of speculation about the retailer’s future.
The Clydebank-based company, which was founded in 2016, included its subsidiary and former council-owned supplier Bristol Energy. It served 176,000 domestic customers and one non-domestic customer.
In a message posted on its website, Together Energy, which is 50%-owned by Warrington Borough Council, insisted it had purchased enough energy, despite media reports.
It 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.”
Last week 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 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.