Bristol Energy Domestic customers sold for £14m
FIFTY jobs are at risk and tens of millions of pounds of taxpayers’ money lost after the city council last week announced the sale of Bristol Energy’s domestic customers for £14million.
The sale to Scotland-based Together Energy, which is 50 per cent owned by Warrington Borough Council, safeguards 110 frontline workers who will transfer over to the new company.
A further 50 Bristol Energy staff will also move over but a consultation regarding their future employment was due start when the consumer deal is completed.
Service for customers will continue as before after Together also bought the Bristol Energy brand and systems, along with 155,000 residential meter points.
Last month, Bristol City Council announced the sale of its business accounts for £1.34million to specialist firm Yu Energy.
But together it means the local authority, having sunk £36.5million into Bristol Energy since its formation in 2015, has now recouped only £15.3million – a loss of £21.2million for a business that had already posted total official losses of £32.5million in the past five years.
The final amount of exactly how much City Hall cash will never be recovered is not yet clear.
The council announced earlier this year that it was selling its wholly-owned company and appointed a new managing director in March to oversee the sale, handing the previous incumbent Marek Majewicz an £86,000 payout for leaving the company.
Bristol deputy mayor Cllr Craig Cheney said last week: “Through
Councillor Craig Cheney, deputy mayor at Bristol City Council
out this process it has been really important that we find a buyer who will not only offer a good deal for Bristol but also shares similar values.
“We are therefore delighted that Bristol Energy has been acquired by Together Energy which has proved committed to do the very best for its staff, customers and the environment.”
Cllr Cathy Mitchell, deputy leader of Warrington Borough Council, which is Together’s 50 per cent shareholder, said the deal was “good news for Warrington”.
In a Bristol City Council press release, Together Energy, whose headquarters are in Clydebank, is described as “one of the UK’s most ethically aware energy firms”.
It says: “Together Energy prides itself on its social impact employing more than 90 per cent of its staff from Scotland’s most deprived areas.
“During negotiations, Together Energy committed to guaranteeing the jobs of 110 frontline workers who will now TUPE into the company and remain in Bristol.
“The companies also both strive to provide renewable and sustainable energy to customers with Together Energy supplying 100 per cent renewable electricity to all its customers.”
Together Energy CEO Paul Richards said: “There are great synergies between both companies and the acquisition is a natural fit to our growth strategy.
“We are an employer with strong social ethics and in the current climate are delighted to have secured so many jobs.
“We are delighted to welcome Bristol Energy’s customers into the Together family and want to assure them that nothing is changing – tariffs, terms and conditions and how you contact Bristol Energy will all remain consistent.
“We also recognise the value of the brand and plan to retain it.”
Together Energy recently signed a new trading agreement with Danish multinational power company Orsted, voted the most sustainable company in the world.
Josh Montgomery, Together’s trading director, said: “It has all fallen together just in time – without Orsted’s support and commitment to green gas and power, we would have struggled to complete the deal with Bristol in the timeframes.
“Our Orsted partnership gives our entire customer base confidence that we are sourcing the most sustainable energy to meet household needs.”
The details of the Bristol Energy sale and the final value will be known after the completion of a transition period during which all contracts move across to Together Energy and staff will TUPE into the business.
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