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The UK Council has a budget of £ 52m for companies with problems

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Taxpayers in a town in the north of England are facing an economic crisis of up to £ 52m if Together Energy’s electricity supplier collapses, the Labor council bought 50 per cent from a troubled company.

Warrington borough council spent £ 18m Half of Together Energy’s assets, based at Clydebank in western Scotland, in 2019.

The Cheshire council has since devised a £ 20m Together loan deal, and provided a £ 14m guarantee to Orsted, a Scottish power broker. This allows the council to raise a total of £ 52m.

Warrington City Council, like other governments in England, has borrowed to set up various businesses that are required to repay reimbursements made by the central government over a relatively short period of time.

Warrington’s actions have also included controversy Debt of £ 150m to THG’s founding billionaire online retailer, Matt Molding. The councils borrowed frequently to increase their revenue, but the size of the THG site in Warrington was unusual.

The council, which currently has a loan of £ 336.4m, said in a statement that it would “return to the council, which could be restored to future jobs”.

But Together is now facing the same dilemma as other electricity suppliers most affected by gas prices, with 26 companies collapsing in the past five months.

Demonstrating financial pressure on Together, the company has been slow to produce a £ 12.4m plus interest rate that is due to the power regulator Ofgem.

These payments, required under Ofgem’s plan to support renewable energy projects in Britain, had already begun. it’s happened by last September.

Together they failed to meet the deadline by the end of October to pay. Now it is due at the end of this month.

Employees who fail to pay according to the so-called renewables renewable may have their licenses revoked by Ofgem, removing them from the business.

Together they were formed in 2016 by Paul Richards, once a An employee of Britain Gas, and he was proud to hire workers from the poorest parts of Scotland. It rose again in 2020 when it acquired Bristol Energy, a former Bristol council retailer, with more than 144,000 customers.

Ken Critchley, a Conservative candidate for Warrington, said the “Joint” incident was “extremely worrying”.

“This is a troubled company that delayed payment at the end of January,” he added. “We have been adamant in our opinion that this is money that the council is at high risk of and should not be made.”

Andy Carter, Tory MP for Warrington South, said he had been asking questions about the council’s budget for the past two years.

“The issue of how Warrington council funding in Together Energy is one of the best examples of what councils should not do,” he added.

In the financial year Warrington council made its first joint venture, the company lost £ 11m and had a debt of £ 19m, though its executives expressed confidence at the time that it was “good” to achieve business growth and profits. “in the future”.

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The company’s most recent accounts, for the year up to October 2020, as well as the current crisis in the electronics market, showed losses down to $ 3.8m but its total debt rose to $ 22.8m, which was said to be $ 22.8m. 17.2m in Warrington Council favorite areas.

All together they did not answer questions about his financial status and whether he could afford to pay the £ 12.4m demand of Ofgem.

A statement posted on the company’s website stated: “There are a lot of speculations about the crisis happening in the UK energy market, but Together Energy is stable.”

Warrington Council declined to comment to Financial Times.

In its 2020-2021 accounts, the council stated: “Warrington’s credit crunch is associated with its greater risk than it does in this region which is characterized by high debt and exposure to commercial risk through its business.”

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