GOTO Energy goes bust, Shell Energy takes on the customers of Daligas, Pure Planet and Colorado Energy

The crisis in the energy supply market continues apace after GOTO Energy became the fifteenth supplier to go bust in 2021. Meanwhile, Shell Energy will take on the customers of failed suppliers Daligas, Pure Planet and Colorado Energy.

Another one bites the dust

Blaming Ofgem’s Price Cap

The scale of the crisis is being blamed on the ongoing global energy crisis, record-high wholesale costs and Ofgem’s Price cap.

Since the start of the crisis, several suppliers have hit out at the price cap with Pure Planet saying that the cap is forcing companies to make up the difference between record prices and customers fixed payments.

“The Government’s price cap, while protecting consumers from sky-rocketing global wholesale energy prices, is not matched by anything which protects suppliers," it said.

Also read: Pure Planet and Colorado Energy exit the market and CNG announces it will stop supplying gas to its utility clients

Shell Energy takes on 252,000 customers

Shell Energy has been chosen by Ofgem to take on the 252,000 customers from suppliers that exited the market last week.

The company has seen its customer base double since the crisis began after it took on the 255,000 customers from Green Energy in September.

In a statement (which is beginning to feel like Groundhog Day) Ofgem said;

“Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

“I want to reassure affected customers that they do not need to worry: under our safety net, we’ll make sure your energy supplies continue. If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.

“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available."



Also read: What are the risks for energy suppliers taking on customers via SoLR?

Further Reading

VAT could be slashed on energy bills thanks to post Brexit powers

Bulb, Octopus and OVO join calls for a suspension of green taxes to reduce energy bills, four more suppliers expected to go bust

What has caused the Energy Market Crisis and what does it mean for the energy retail market?

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For more information on how to start and manage an energy company, get in touch with Dyball Associates today.