Pure Planet and Colorado Energy have become the latest casualties of the volatile energy market, it has been announced.
The two suppliers boast 235,000 and 15,000 customers respectively, and become the thirteenth and fourteenth energy suppliers to exit the market since the beginning of 2021.
Pure Planet has blamed its collapse on BP, which was its main financial backer with a 24% stake in the business, deciding to cut off support due to the high likelihood of it becoming unprofitable in the coming months.
Customers whose supplier has gone bust do not need to worry. Under Ofgem’s Supplier of Last Resort system, a new supplier will be appointed to handle their energy supply, but they won’t lose their supply in the meantime. Uswitch’s guide explains the process in more detail.
Richard Neudegg, head of regulation at Uswitch.com, said: “While this is not the news that anyone wanted to see, affected customers can be reassured that their energy supply will continue as normal and their credit balances will be protected.
“If you are affected by your supplier leaving the market, don’t do anything until you are moved to a new provider appointed by Ofgem, as trying to switch to a new supplier could create administrative delays in getting your credit balance returned.
“Once the move has been completed, the best advice for most people right now is still to hold tight. If you’re on a standard variable tariff it’s unlikely there will be a better value deal to switch to - given the current price cap protection over winter and the unprecedented wholesale price situation.
“Customers of failed suppliers should also note their meter readings now, and again when contacted by their new supplier, to ensure their bills are accurate.”