The UK’s energy retail market seems to have been hit by a never-ending chain reaction of collapses after Ofgem’s announcement earlier today that two more suppliers ceased to trade.

Pure Planet and Colorado Energy have failed.

Pure Planet has around 235,000 domestic customers while Colorado Energy supplies gas and electricity to around 15,000 domestic customers.

It had been previously reported that bp-backed Pure Planet was struggling under the current conditions.

Ofgem’s safety net will ensure that the customers’ lights are kept on and payments will be protected.

Ofgem said that customers of these two firms will be contacted as soon as their new supplier will be chosen.

An unprecedented increase in global gas prices has put suppliers under intense financial pressure.

In recent weeks many energy companies left the market and analysts predict that there will be more to follow.

The energy market regulator said it is working closely with the government and industry to make sure customers continue to be protected this winter.

Neil Lawrence, Director of Retail at 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: 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.”