Home Business News Two more energy firms collapse one of which is BP backed due to soaring gas prices

Two more energy firms collapse one of which is BP backed due to soaring gas prices

by LLB staff reporter
14th Oct 21 12:20 pm

250,000 customers are facing higher bill as two more energy firms have collapsed and it is very likely more will follow.

The watchdog Ofgem said that customers energy supply and any credit in their accounts will be protected.

Colarado Energy and Pure Planet which is backed by BP have gone bust as a result of soaring gas prices as wholesale prices rocketed.

Pure Planet who have 235,000 customers said they were not able to continue “due to the global energy crisis, record high wholesale energy costs, and the restrictions placed on us by Ofgem’s Price Cap.”

Andrew Ralston, Chris Alliott and Steven Day who are the co-founders of the BP-backed supplier 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.

“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.”

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.”

Since the start of the year 14 energy suppliers have closed and since September eleven have folded.

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