Warrington Borough Council looks set to approve the purchase of an £18 million stake in Clydebank-based supplier Together Energy.
At a council meeting held last night (9 September) the cabinet approved the acquisition of the holding in Together, which equates to 50 per cent of the business, as well as a £4 million loan to the energy retailer.
The council says the purchase of the stake supports its aim of setting up and delivering a local municipal licensed energy supply company.
A number of municipal-owned energy suppliers already exist within the sector, with Nottingham being the first when it established Robin Hood Energy in 2013.
Bristol Energy is another example while white label agreements have been struck with Peterborough and East Cheshire local authorities.
In response to the decision Paul Richards, chief executive of Together Energy, said: “We are delighted and welcome the cabinet’s approval.
“The team at Warrington Borough Council is both visionary and ambitious in its approach to sustainable energy and helping to future proof community services through its carefully planned investments.
“This vision is shared by all of us within Together Energy where our approach to our values and staff has been significantly unique within the industry and we are extremely proud of what we have already achieved in just three years in business.”
Yesterday industry regulator Ofgem agreed to allow Together Energy to claim up to £4.5 million to settle the costs it incurred during the supplier of last resort (SoLR) process in December last year when the company took over the 36,000 customers of failed supplier One Select.