Pure Planet and Colorado Energy cease trading

The two providers, Pure Planet, which provided gas and electricity to around 235,000 domestic customers, and Colorado Energy, a gas and electricity provider to around 15,000 consumers in the UK, have entered into this process after announcing they have ceased trading.

Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic consumers have paid into their accounts will be protected where they are in credit. They will also be protected by the energy price cap when being switched to a new supplier.

This brings the total number of suppliers to go out of business this year up to 14 and comes during a period of record gas prices in the UK, hitting its highest level to date last Wednesday (6 October), being traded as high as 400p a therm.

This, in turn, has led to the energy price cap going up. At the start of October, those on a default tariff paying by direct debit saw a £139 increase, going from £1,138 to £1,277, while those prepayment customers saw an increase of £153, going from £1,156 to £1,309.

However, due to the soaring gas prices, there have been calls from some in the industry that the government should increase the energy price cap still further. Despite this, business secretary Kwasi Kwarteng has ruled out doing this, describing it as a “non-negotiable”.

Writing in the Sunday Express over the weekend, he said: “The safety net that we have in place to shield consumers from price hikes this Christmas, and ensure everyone gets the supply they need.

“Despite some who are pushing me to lift the cap, I am absolutely clear it is here to stay and will remain at the same level throughout winter. Keeping this protection in place is non-negotiable for me.”

This comes as one UK gas provider, CNG, has reportedly said it would no longer provide gas to its utility clients. The firm supplies wholesale gas to utility companies who then sell it to households.

According to Bloomberg, its chief executive Paul Stanley said “the company has been forced into an impossible position” after many of its utility customers ceased trading during the energy crisis.

In addition to this, Sky News has said advisers to CNG are seeking offers for the arm of its operations by the end of the week. Its sources say the firm is working with legal and accounting advisers to prepare the wholesale business for an insolvency process, with an insolvency practitioner likely to be appointed early next week.

The current state of the energy market will be high on the agenda at this year’s Utilities and Telecoms Conference, sponsored by Just - taking place on 24 November at The Midland in Manchester. To find more information about the event, click here.