The households served by Pure Planet (235,000 customers) and Colorado Energy (15,000 customers) will be transferred to an as yet undisclosed new supplier. In the meantime, your supplies will continue as normal and the Energy Regulatory Agency Ofgem says all balances are protected.
Ofgem will now begin selecting new suppliers to accommodate the company’s customers. Once these new suppliers have been appointed, you will be contacted regarding the transfer of your account and told what happens next. Once your account has been transferred you can switch, although prices are currently at a record high due to unprecedented wholesale costs (the price utilities pay for gas and electricity), switching is unlikely to save you. But you can use our free Cheap Energy Club to check it out.
The news follows the failure of PFP Energy, MoneyPlus Energy, Utility Point, People’s Energy, Avro Energy. Green Supplier Limited, Igloo Energy, Symbio Energy and Enstroga, all of which have ceased trading since early September. We have an analysis of the new businesses that customers of the failed companies in our bankrupt energy company are being taken to? Compare the news with your new deal – we’ll update this as soon as we know who the new suppliers are for Pure Planet and Colorado Energy customers. A total of around two million households have been affected by delivery failures in the last six weeks, and more are to follow in an extreme time for the energy market.
Check out our latest weekly email for the Energy Bill Crisis Q&A from MoneySavingExpert.com founder Martin Lewis.
A new provider will be hired to take over your care – wait until they get in touch with you
If you are a customer of one of these companies:
- You can’t save now anyway by switching now – but even if you could, you shouldn’t. While possible, Ofgem says that you should wait to be contacted by the new supplier in the coming weeks, otherwise you could have problems with your switch.
- Take a meter reading. It is useful to have it ready when your new supplier contacts you. You should do this whether you are a credit meter or a prepay customer.
- Download your energy bills / screenshot credits. When a company goes bust, websites can go offline. So go to the company’s website or app ASAP and get the information now so you have a record of it.
- When a new supplier is appointed, you are promoted to a new deal – which will almost certainly cost more. Ofgem says it is likely that your current contract will end and you will be transferred to a special “recognized” contract (a plan that you did not choose). These are usually at the price cap, so your bills are likely to go up. However, there are currently no cheaper offers for new customers, so you will probably not save money by switching. While this may be frustrating, remember, if you had never switched, you would have chosen this plan anyway, and at least until now you’ve got a far cheaper plan than available – so overall, you’ve won, not lost.
The energy loan is protected even if you have recently left the company – so you do not lose any money that is owed to you
You may be owed money from Pure Planet or Colorado Energy once your account has accumulated funds. In this scenario, the supplier commissioned by Ofgem will pay you back all the monies owed to you – this also applies if you had already started the change before the company went down. The supplier commissioned by Ofgem should contact this to agree on a refund – even for those who have not switched to it – but this can take a while.
If you owe money, you probably have to pay it anyway. Payments are made either to the bust supplier, its manager, or to the new supplier. The new supplier will tell you how this works after the takeover.
If you are in the process of switching, your switch will still take place
If you have already started switching from Pure Planet or Colorado Energy, you will continue to switch to the new provider you have chosen. You shouldn’t have to do anything. Your direct debit with your current supplier should be automatically canceled, but check anyway and if not, cancel it manually after the switch is complete. All outstanding credits will be paid out to you by the supplier appointed by Ofgem – see above for more.
If you are about to switch to one of the failed suppliers, the switch should go as planned, although you will then be automatically switched to the new supplier that Ofgem will appoint.
There’s no need to cancel your direct debit, but it’s okay if you’ve already done so
You don’t have to cancel your direct debit immediately. Ofgem says your new supplier will be in touch shortly to explain how they will charge your account, including any direct debit schemes.
Ofgem says you can cancel your direct debit before the new provider contacts you if you want. If you’ve already canceled it, there is no need to reactivate it and your new supplier will explain what to do as soon as they get in touch with you.
What does Ofgem say?
Neil Lawrence, Director of Retail at Ofgem, 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 take care of their energy supply under our safety network. When you have a balance in your account, the funds deposited are protected and you will lose the money that is owed to you.
“Ofgem will select a new supplier for you and while we are doing this our advice is to wait until we name a new supplier and not change in the meantime. You can rely on your energy supply as usual. We will let you know, 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.”