An energy supplier with 170,000 customers could be the first to collapse this year if it doesn’t get an emergency cash injection.

Together Energy – which is 50%-owned by Warrington Borough Council – is expected to run out of money at the end of the month, Sky News reports.

A source claimed that professional services firm Alvarez & Marsal (A&M) is about to abandon its last-ditch attempt to find new funding for the company.

A spokesperson for the Together Energy insisted yesterday it was ‘still in active conversations’.

If it collapses the firm would be the 26th supplier to cease trading since August last year.

Many companies have struggled as the industry price cap has remained despite gas wholesale prices soaring in turbulent markets.

It would be placed into Ofgem’s Supplier of Last Resort (SOLR) process, and other companies will bid to take on Together Energy’s customers.

Business secretary Kwasi Kwarteng is set to hold further talks with energy bosses, who are calling for the price cap to be scrapped and emergency bailouts.

The largest company to collapse to date was Bulb, which went bust in November. It was the UK’s seventh-biggest energy supplier and had 1.7 million customers, who are currently protected as the firm is under special administration backed by taxpayers.

Warrington Borough Council invested £18 million in Together Energy in September 2019, saying the work was ‘an important part of the council’s work to address the climate emergency, tackle fuel poverty and create new job opportunities for local people’.

One source said Warrington Borough Council would not provide any additional funding to the troubled firm.

But the cost of energy bills for millions of customers are set to rocket from April 1 as the price cap is increased.

Boris Johnson is reportedly announcing new measures within the next month to help those struggling with the increase in prices.

Ministers have concluded ‘something needs to be done’ and the prime minister is expected to personally take part in energy crisis meetings next week.

The Treasury would be forced to spend additional funds on the crisis after already being heavily squeezed because of the coronavirus pandemic.

Money Saving Expert founder Martin Lewis warned millions face choosing between ‘heating or eating’ this year due to ‘seismic’ bill rises.

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