The renewable energy provider Pure Planet will cease trading, said regulator Ofgem, which affects 235,000 customers.
Colorado Energy has also gone bankrupt, affecting an additional 15,000.
“The government and Ofgem expect Pure Planet to sell energy at a much lower price than it currently costs to buy,” Pure Planet said in a notice to customers on its website.
“This is not sustainable and so we unfortunately had to make the difficult decision to stop trading.”
It adds, “We’re really sorry to have let you down.”
Neil Lawrence, Director of Retail at Ofgem Regulator, said, “Ofgem’s number one priority is protecting customers. We know this is a worrying time for many people and the news that a supplier is going out of business can be worrying.
“I would like to assure affected customers that they do not have to worry: We will take care of their energy supply under our safety network. When you have funds in your account, the funds you deposit are protected and you will not lose the money owed to you.
“Ofgem will select a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and not change in the meantime. As usual, you can rely on your energy supply. We will inform you when we have selected a new provider who will then contact you regarding your tariff.
“Any customer who has concerns about paying their energy bill should contact their supplier for access to the available support services.”
More to come …