Energy suppliers Pure Planet and Colorado Energy collapse in gas price crisis

13 October 2021, 17:56 | Updated: 13 October 2021, 18:28

Two more energy suppliers collapsed due to the rise in wholesale prices
Two more energy suppliers collapsed due to the rise in wholesale prices. Picture: Alamy

By Asher McShane

Renewable supplier Pure Planet went bust this afternoon, becoming the latest company to cease trading in the energy price crisis.

A statement on the firm's website states: "Due to the global energy crisis, record high wholesale energy costs, and the restrictions placed on us by the Ofgem Price Cap, we are unable to keep operating Pure Planet."

Pure Planet is understood to have had 250,000 customers.

In a statement, Pure Planet's co-founders 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. 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."

Another firm, Colorado Energy, also went bust today. Colorado has around 15,000 customers.

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. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.

"Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available."