Energy crisis: 250,000 customers face price rises as Pure Planet and Colorado Energy cease trading
By SEAMLESS DAILY
13 October 2021
Renewable energy supplier Pure Planet is to cease trading, regulator Ofgem has said, affecting 235,000 customers.
They followed the failures of People's Energy, Green Supplier Ltd, Utility Point, PfP Energy, MoneyPlus Energy, and Avro Energy, affecting almost 1.5 million more householders.
Neil Lawrence, director of retail at regulator Ofgem, said : "Ofgem's number one priority is to protect customers.
"We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
on wednesday evening, ofgem's director of retail, neil lawrence, said : "i want to reassure affected customers that they do not need to worry : under our safety net we 'll make sure your energy supplies continue.
"if you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you."
Neil Lawrence, director of retail at Ofgem, said of the latest energy firms to collapse : "Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.
"you can rely on your energy supply as normal.
"Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available."
It comes after Igloo, Symbio and Enstroga ceased trading on 29 September, affecting a combined 233,000 domestic customers.
The chaos in the sector comes amid warnings Britons could see their energy bills rise by 30 per cent next year.
Gas price volatility is set to continue and the possible collapse of even more suppliers could see the energy price cap jump to around £1,600 by next summer, according to research agency Cornwall Insight.
the forecast is nearly a third higher than the record £1,277 price cap set for winter 2021-22, which commenced at the start of october.
Colorado Energy had just 15,000 customers.
The customers will be transferred to new suppliers by the regulator Ofgem under the supplier of last resort scheme.
the demise of pure planet and colorado means 14 small suppliers have collapsed this year.
This now takes the number of firms to go bust since the beginning of this year to 14, displacing almost 2.4million customers.
The statement explained despite the backing of BP, "Pure Planet faced increasing risks and large potential losses by continuing to operate in this market", leading the oil giant to withdraw its support.
"The Government's price cap, while protecting consumers from sky-rocketing global wholesale energy prices, is not matched by anything which protects suppliers.
"Instead suppliers are being asked to fund the difference between the record costs of wholesale energy and what they are allowed to sell it for to consumers.
"Too many have gone bust already, and more will in the future unless something changes."
pure planet said it had hedges in place to last until spring.
In a statement, Pure Planet blamed the UK's energy price cap for its failure and lashed out at the business secretary, Kwasi Kwarteng, who has said there would be no taxpayer-funded bailouts for struggling energy companies.
While Colorado offered little detail on its collapse, Pure Planet co-founders, Andrew Ralston, Chris Alliott and Steven Day, criticised the government's decision not to support energy suppliers.
"Kwasi Kwarteng says the price cap is non-negotiable.
Fair enough," they said.
Stay up to date with our posts
Seamless Daily is an innovative news platform that is updated 24/7 to help you keep up to date with all the current events around the globe.
Our team of professional editors as well as our state-of-the-art artificial intelligence platforms ensure that our curation is accurate, fact-checked, and trustworthy.