(Updates with BP comment)
By Susanna Twidale
LONDON, Oct 13 (Reuters) - Two more British energy suppliers
have ceased trading, regulator Ofgem said on Wednesday, taking
the total number of firms to go bust since the beginning of
September to 11 as companies struggle with record wholesale
energy prices.
Pure Planet, in which oil major BP holds a stake of
about 24% and which has around 235,000 customers, and Colorado
Energy, with 15,000 customers, have exited the market.
Many British energy suppliers have struggled with the
soaring wholesale gas and electricity prices while the amount
they are able to charge customers is limited by Ofgem's price
cap.
“In our case, despite being hedged until next spring, and
having had the backing of BP, Pure Planet faced increasing risks
and large potential losses by continuing to operate in this
market," Pure Planet said in a statement.
"Sadly, this led to BP taking a decision to withdraw its
support and we are no longer able to continue."
BP, said it had worked to support Pure Planet and provide
financial support through wholesale supply and other working
capital arrangements.
"However, despite considerable work over an extended period,
we concluded it is no longer commercially viable for BP to
continue this relationship and took this difficult decision," a
BP spokesperson said in an emailed statement.
Britain's domestic price cap rose 12%-13% from Oct. 1 but
wholesale prices have risen significantly since that
announcement was made in August.
Analysts have said the difference between wholesale energy
prices and those suppliers are now allowed to charge is around
400 pounds ($545) per customer.
Nine suppliers went bust in September and Britain's energy
minister Kwasi Kwarteng last week said more companies could
collapse but ruled out providing support for struggling energy
firms.
($1 = 0.7329 pounds)
(Reporting by Susanna Twidale, additional reporting by Ron
Bousso
Editing by David Goodman, Kirsten Donovan)