Council debt in Together Energy set to be repaid in full

FEARS Warrington Borough Council would lose millions in the failed energy company, Together Energy, look set to be unfounded, with outstanding debt expected to be repaid in full.

Administrators FRP paid the borough council £10m on July 11 and the balance of the council’s claim of £15.2m is likely to be paid from the liquidation.
The council had already been released from their £29m Orsted guarantee.

Following the collapse of the company, which was 50 per cent owned by the borough council in January 2022 due to the spike in retail energy prices, there were fears more than £40m was at risk.

Despite the failure of Together Energy, the council remained confident losses would not be as great as feared.

A recent document from the administrators says it is anticipated that there will be funds to settle the secured, preferred and secondary preferential creditors and a dividend to pay ordinary creditors.
The administrators go on to say that based on current information Warrington Borough Council should have its outstanding debt repaid in full.
The council had put in a claim of £25.2m including fees and interest, receiving £10m on July 11th with the balance expected to be paid in the liquidation.

A Warrington Borough Council spokesperson said: “The exact amount we will receive is currently in the process of being finalised with the administrator. We will provide an update as soon as we know what the likely final position will be.”