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Together Energy is to be expelled from the Balancing and Settlement Code (BSC) after failing to reduce its credit cover percentage.
The Clydebank-based company, which trades on the BSC as ‘Eddingtn’, was listed as being in credit default on 4 January.
Parties buying and selling electricity are required to post sufficient collateral to cover their outstanding payments in case they go under.
In a circular, code administrator Elexon said a meeting of the BSC panel had convened on 7 January and noted that the supplier had failed to sufficiently reduce its credit cover percentage over a period of two working days.
It subsequently resolved to expel the retailer from the BSC, subject to Ofgem approval. If approval is granted, the company will no longer be able to trade energy.
Together Energy is 50% owned by Warrington Borough Council which invested £18 million into the business in 2019.
The council declined to comment on the matter when approached by Utility Week.
In addition to being in credit default, the disruptor brand was last year revealed by the energy regulator to owe more than £12.4 million in Renewables Obligation payments.
Furthermore, Sky News revealed in November the company was working with advisers Alvarez and Marsal to raise additional capital.
Both Together Energy and Alvarez and Marsal declined to comment when approached by Utility Week.
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