TOGETHER Energy is the latest firm to face collapse as it’s feared the energy supplier could run out of funding by the end of this month.
The stark warning just days into the new year comes after 26 energy providers ceased trading in 2021.
1
Together Energy could be the first casualty in the energy industry of 2022, Sky News reports.
It would affect 170,000 customers, leaving households facing price hikes.
The firm, which is 50%-owned by Warrington Borough Council, is said to be looking for emergency funding.
A spokesperson said the company was “in active conversations” about a cash injection.
Together Energy was understood to be looking for funding options back in November.
Sources have now said the chances of it securing funding are “remote”.
Most read in Money
Bulb was the last energy supplier seeking a rescue deal, and it collapsed in November, leaving 1.7million customers facing higher bills.
Households are already set to see their bills double to more than £2,000 this year as the energy crisis continues.
And it is feared more firms could go bust as they struggle to cope with rising wholesale costs.
Martin Lewis has today urged Brits to brace themselves as bills could rise by £600 when the energy price cap increase is announced next month.
Experts predict energy bills will rise by 51% when the price cap is reviewed by the energy regulator Ofgem, with an increase applied from April.
Some households are also being double charged after their provider has collapsed – with payments being taken from both their old and new suppliers.
The Sun has contacted Together Energy and Warrington Council for comment.
Warrington Borough Council ploughed £18illion into the company in September 2019 to “address the climate emergency, tackle fuel poverty and create new job opportunities for local people”.
Last year, the council predicted the firm would have 850,000 customer accounts within three years.
What should I do if my energy provider collapses?
If your provider does cease trading you won’t lose your energy supply.
Ofgem will arrange an interim provider for you.
You should, however, take an up-to-date meter reading and keep your latest bill as well as details of any credit on your account.
The current advice, when you are appointed a new supplier, is to stay on the standard tariff and not lock in to a fixed deal.
Currently, fixed tariffs are more expensive than the energy price cap.
Three things all energy customers should do now
Even if your energy provider still looks safe for now, there are a few things you can do to prep.
Take a regular, up-to-date meter reading first off – that way you’ll have this to hand should you need to speak to a new supplier.
You should also keep hold of all your bills.
A new provider doesn’t need to honour your current deal, but any credit you have on your account will be transferred over so you’ll want to know how much you’ve got.
Finally, don’t lock into a new deal if yours comes to an end.
Current fixed tariffs are more expensive than the price cap, so unless you can lock into a deal that’s significantly cheaper, it’s best to wait until prices ease off before tying yourself in.
Martin Lewis has said to only agree to a fixed tariff if it is a maximum of 40% more expensive than your current one.
Martin Lewis warns energy bills will rise by £600 a year in April
We pay for your stories!
Do you have a story for The Sun Money team?
