Andy Carter, an MP for Warrington South, said: “Losses in the millions for Warrington Council, quite rightly the council should review its borrowing and investment strategy.
“Conservatives are convening an urgent meeting for all councillors to discuss the way forward.”
Mr Carter continued: “Having highlighted the risky investment many times in Parliament over the last two years it was only a matter of time before the inevitable happened, I am sorry to see that Together Energy has gone into administration and I recognise this will be a concerning time for those people who’s jobs are now immediately at risk.”
The company, which served 176,000 domestic customers, had previously written on its website: “Despite press reports, we did buy enough gas and electricity for your needs, but the sustained increase in wholesale prices and the securities required to continue to forward purchase the energy, have meant that it is untenable for us to continue.”
In a written response the council said: “We are very disappointed that Together Energy will be ceasing to trade due to the current energy crisis, which has already resulted in the closure of several energy companies.
“Our vision was to be part of a company that tackles the climate emergency by delivering 100% green energy to customers, contributes to reducing fuel poverty and provides local jobs in Warrington – particularly for those out of work or without formal qualifications – but the current market conditions are sadly not sustainable.
“We know that Together Energy’s operating model was resilient and our approach to hedging extremely robust, but the enormous and sustained wholesale price rises mean that it is now one of many companies that has had to leave the market.
“We know this will be a difficult time for Together Energy customers and staff. We also know that Together Energy’s closure will have an impact on our residents.
“While it is our absolute priority to minimise any and all exposures we have as a council, we must first, as a priority, ensure that the independent administration process completes in a timely manner, and that Together Energy’s customers are seamlessly transferred to another provider.”