Energy Shock: 250,000 Customers Hit by Rising Bills as Two Firms Collapse
Just when you thought you’d signed up for a tidy energy bill, the universe had other plans. Two suppliers have folded—Colorado Energy and the BP‑backed Pure Planet—leaving a staggering 250,000 people scrambling to keep their lights on without breaking the bank.
What Went Wrong?
- Global wholesale gas prices surged, sending the cost of buying energy straight up the ladder.
- Regulators, while shielding consumers from sky‑high costs (“Ofgem’s Price Cap” in 2024), didn’t give suppliers the same safety net.
- Suppliers turned into debt‑wrung unsinkable ships. When they couldn’t cover the difference between what they paid and what they sold, the boats went down.
Pure Planet’s Heartbreak
Pure Planet’s co‑founders, Andrew Ralston, Chris Alliott, and Steven Day, called it “heartbreaking” as the company slid into the Supplier of Last Resort procedure. With 235,000 customers on board, they said the crisis felt like a corporate “plastic surgery” that could never recover.
Official Response
Neil Lawrence, Ofgem’s retail director, promised a safety net for customers. “Customers don’t need to panic,” he said. “Your supply stays on track, any credit in your account stays safe, and we’ll hand you a new supplier soon. Until we appoint a new one, stick with the plan; don’t switch.”
Broader Picture: How Many Firms Gone Rogue?
In 2024 alone, 14 suppliers have jettisoned themselves from the market—11 folding since September. That’s a record 200% increase from the same period in 2023.
What Customers Can Expect
- Keep paying the regular power bill — no new supplier jumps.
- Retain any credits you’ve already added.
- Await Ofgem’s new supplier announcement — they’ll escort you straight into a fresh contract.
So, for now, let’s roll with the good news. Energy might be on a wild rollercoaster, but I’ve got re-assurance that the safety belt (or Ofgem’s net) is secure, and your lights will stay lit.
