Two other UK energy suppliers collapsed due to soaring global wholesale energy prices.
Pure Planet and Colorado Energy, which have a total of 250,000 customers in the United Kingdom, have become the latest failures after the cut of nine small energy supplies since the beginning of September.
The energy watchdog, Ofgem, said it would protect the energy supply and customers’ credit on their accounts.
Pure Planet, which has 235,000 customers in the UK, said it was unable to continue operating “due to the global energy crisis, record-breaking energy costs and restrictions imposed by the cap Ofgem Awards “.
BP-backed supplier co-founders Andrew Ralston, Chris Alliott and Steven Day said: The UK supply market.
âGovernment price caps, while protecting consumers from soaring global wholesale energy prices, are matched by nothing that protects suppliers.
âInstead, suppliers are being asked to fund the difference between record wholesale energy costs and what they are allowed to sell to consumers.
âSuppliers are increasingly unable to cover their costs.
“Too many people have gone bankrupt 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.
Neil Lawrence, Director of Retail at Ofgem, said: âOfgem’s number one priority is protecting customers.
âWe know these are worrying times for many people and that news of a supplier’s bankruptcy can be troubling.
âI want to reassure affected customers that they don’t have to worry: through our safety net, we will ensure that your energy supply continues.
âIf you have credit in your account, the funds you put in are protected and you won’t lose the money you are owed.
âOfgem will choose a new supplier for you and while we are doing this our advice is to wait to appoint a new supplier and not change in the meantime.
âYou can rely on your energy supply normally. “
It comes after Igloo, Symbio and Enstroga went out of business on September 29, affecting a total of 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 nearly 1.5 million more homes.
Ofgem also said several industry players have not contributed to various funds and could have their licenses revoked if they don’t spit.
The chaos in the sector comes amid warnings that Britons could see their energy bills increase by 30% next year.
Research agency Cornwall Insight has predicted further volatility in gas prices and the potential collapse of even more suppliers could push the energy price cap to around Â£ 1,660 in the summer.
The forecast is around 30% higher than the record price cap of Â£ 1,277 set for the winter of 2021-2022, which began in early October.
Ofgem reviews the price cap once every six months and changes it based on the cost that suppliers have to pay for their energy, the cost of policies and the operating costs, among others.
The UK free-for-all energy market is not working. It is a breach of consumers, workers and the planet
GMB Country Manager Andy Prendergast said: âTwo other energy companies went bankrupt today – and they won’t be the last.
âThe UK free energy market is not working. It is a failure by consumers, workers and the planet.
“We need more regulation, a coherent strategy and rethinking the price cap, otherwise we will see more and more companies fall into the wall.”