In the statement made by Ofgem, it was stated that the companies Pure Planet and Colorado Energy, in which British Petroleum (bp) owns 24 percent, have ceased operations and filed for bankruptcy.
Together with these companies, the number of energy companies that went bankrupt in the country since the beginning of September has increased to 11.
In its bankruptcy statement, Pure Planet stated that the current situation is “unsustainable” as it could not pass on the increased energy costs to its customers due to the upper limit on the invoices.
In the statement, it was stated that the British government and the auditing company Ofgem expected energy companies to sell below cost, while BP decided to withdraw its support from the company.
“Despite significant long-term work, we have concluded that it is no longer commercially viable for bp to maintain this relationship, and we made this difficult decision,” bp said in a statement. statement was included.
Ofgem directs 235,000 customers of bankrupt Pure Planet and 15,000 customers of Colorado Energy to alternative energy companies.
In the statement made by Ofgem, it was noted that the increase in natural gas prices on a global scale in recent weeks has put an unprecedented pressure on energy companies.
11 energy companies (Avro Energy, People’s Energy, Greensupplier Ltd, Utility Point, Igloo, PFP Energy, Symbio, MoneyPlus Energy, Enstroga, Pure Planet and Colorado Energy) that went bankrupt in the UK since the beginning of September, totaling approximately 2 million in the British market. was serving the customer.
Ofgem automatically transfers the customer of the energy companies that went bankrupt in the country to another energy company so that the service is not interrupted.
UK energy bills capped to protect consumers
The supervisory agency Ofgem has been applying an upper limit on energy bills to protect the rights of consumers in the country since January 2019.
Energy companies that cannot directly reflect the energy costs that have increased rapidly in the country to their customers due to the upper limit on the invoices have difficulty in maintaining their activities.
Ofgem had increased the upper price limit on energy bills by 12 percent earlier this month to £1277.
British research firm Cornwall Insight said in a statement on 7 October that the upper limit on energy bills could rise from £1277 to £1660 per year in April next year.
The British government seeks a solution
Kwasi Kwarteng, the British Minister of Business, Energy and Industrial Strategy, had previously promised to resolve the high price crisis in the country due to insufficient supply in the face of increasing natural gas demand.
Kwarteng said that providing credit support to large-scale energy companies that cannot fully reflect the increasing natural gas prices directly to consumers due to the upper price cap application could be considered as an option.