Pure Planet and Colorado Energy are the latest energy firms to cease trading
Pure Planet and Colorado Energy are the latest energy firms to cease trading (Picture: PA)

Two more UK energy suppliers have collapsed, with 250,000 customers now facing higher bills.

Pure Planet and Colorado Energy have become the latest casualties of the gas crisis after wholesale prices went through the roof.

It means eleven small energy suppliers have now gone bust since the start of September and 14 since the start of the year.

Energy watchdog Ofgem has said it will protect the customers’ supply of energy and credit in accounts.

It’s after warnings that another four companies were likely to collapse this week, with more predicted to go before the end of the year unless historic price rises are reversed.

Pure Planet, which has 235,000 UK customers, said it was unable to continue operating ‘due to the global energy crisis, record high wholesale energy costs, and the restrictions placed on us by Ofgem’s Price Cap’.

Co-founders of the BP-backed supplier, Andrew Ralston, Chris Alliott and Steven Day said: ‘We are heartbroken that Pure Planet has entered the Supplier of Last Resort (SoLR) process due to the global energy crisis and the way it has impacted the GB supply market.

‘The Government’s price cap, while protecting consumers from sky-rocketing global wholesale energy prices, is not matched by anything which protects suppliers.

Could one of the big six energy suppliers collapse?
The 12 companies that went bust this year, before the latest announcements

‘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.

‘Suppliers are increasingly unable to cover their costs. Too many have gone bust already, and more will in the future unless something changes.’

Ofgem also said that Colorado Energy, which has 15,000 customers, has entered the SoLR process due to the current crisis facing small suppliers.

RUNCORN ENGLAND - SEPTEMBER 27: Wind turbines and electricity pylons dominate the landscape at Ince Salt Marshes near to chemical and manufacturing plants on the River Mersey estuary on September 27, 2021 in Runcorn, England. Rising prices of natural gas in the UK have pushed several energy suppliers out of business this year, with other industries warning of knock-on effects, such as the production of carbon dioxide, which is widely used by the food and drink industry. Power generated by wind turbines has also dropped by up to 20% in the last few months due to calm weather across the UK. (Photo by Christopher Furlong/Getty Images)
The energy price cap is likely to rise again next year (Picture: Getty)

Neil Lawrence, director of retail at 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.

‘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.

‘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.’

Control panel of the gas boiler for hot water and heating; Shutterstock ID 161938061; Purchase Order: -
Householders are facing increases in their bills (Picture: Shutterstock)

It comes after Igloo, Symbio and Enstroga ceased trading on September 29, affecting a combined 233,000 domestic 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.

Ofgem has also said several players in the sector have not paid into various funds and could have their licences revoked if they do not pay up.

The chaos in the sector comes amid warnings Britons could see their energy bills rise by 30% next year.

Research agency Cornwall Insight has predicted further volatile gas prices and the potential collapse of even more suppliers could push the energy price cap to about £1,660 in summer.

The forecast is approximately 30% higher than the record £1,277 price cap set for winter 2021-22, which commenced at the start of October.

MORE : Four more energy firms ‘could collapse this week’

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