UNCERTAINTY continues to surround the fate of £18 million the council invested into an energy firm which collapsed – with the exact amount it will get back currently being ‘finalised’.

Together Energy announced it was to cease trading immediately in January 2022.

The council owned a 50 per cent stake in Together Energy after initially investing £18million in September 2019. It had also given a loan to the company.

In a report to the audit and corporate governance committee for its meeting last month, Together Energy was included in the 2023-24 draft statement of accounts document.

In relation to ‘uncertainties’, it said: “The council owns a 50 per cent shareholding in Together Energy (TE). In January 2022 they initiated the Supplier of Last Resort process and appointed administrators. FRP was appointed as administrators and have since been working through the process of insolvency and winding down TE.

“Forecasting based on current information that the loans owed to WBC (£18.8m) would be repaid in full plus accrued interest. However, uncertainty still exists on the repayment of the initial equity injection of £18m.”

Furthermore, in relation to the ‘effect if actual results differ from assumptions’, it said: “The equity investment was purchased using the capital financing regime, which if not repaid would be a charge to the capital adjustment account. MRP is charged and therefore there would be no further impact to the council taxpayer. Money has been set aside in reserves to cover any potential loss.”

The council has been asked if it knows how much money it will get back from this investment.

“The exact amount is currently in the process of being finalised with the administrator,” said a spokesman.

“We will provide an update as soon as we know what the likely final position will be.”

Asked if it is confident there will be no impact to residents as a result of any losses from this investment, the spokesman said: “Yes, any potential losses are already factored into the council’s budget.”

In relation to the 2023-24 draft statement of accounts, the council confirmed these are ‘still subject to audit sign off’.

The spokesman said: “Nationally, council accounts do not go to full council.

“The 2023-24 accounts, like all councils’ accounts at this stage, are still draft.

“The draft accounts were reported to the July meeting of the council’s audit & corporate governance committee. These accounts are still subject to audit sign off.”