Rising gas prices lead to bankruptcy of 2 more British energy companies

Two more energy suppliers have ceased trading amid soaring wholesale energy prices leaving thousands of homes facing higher bills, Report informs referring to MailOnline.

The 100 percent renewable energy supplier Pure Planet and Colorado Energy have both collapsed in the face of the fuel price crisis.

The companies are the latest British suppliers to cease trading in the past few weeks as prices touched record highs and tariff caps hit smaller firms struggling to keep up with increasing costs.

In total, 11 companies have folded since September, leaving hundreds of thousands of customers having to switch companies and facing increased costs.

Pure Planet and Colorado have a combined total of 250,000 customers who will now be moved to a different supplier by Ofgem under the regulator’s Supplier of Last Resort system.

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.”

Wholesale gas prices have soared in recent months as economies reopen from COVID-19 lockdowns and high demand for liquefied natural gas in Asia pushed down supplies to Europe.

Some 14 British energy suppliers have already collapsed this year, affecting more than 2 million customers.