UK's Shell Energy to take on customers of three failed suppliers

LONDON (Reuters) - Britain's energy market regulator Ofgem said on Monday it has appointed Royal Dutch Shell's power retail business Shell Energy to take on customers of Pure Planet Limited, Daligas Limited and Colorado Energy Limited.

The three firms had a combined total of around 252,000 domestic and 600 non-domestic customers. They ceased trading last week.

Last month, Shell Energy took on 255,000 customers from another failed supplier, Green Supplier. That means that in total, Shell Energy will add 50% of its current customer base of around 1 million.

Many British energy suppliers have struggled with soaring wholesale gas and electricity prices while the amount they are able to charge customers is limited by Ofgem's price cap.

Earlier on Monday, British energy supplier GOTO Energy Ltd ceased trading, becoming the 12th UK energy firm to fail since the beginning of September.

Ofgem said that, for existing Pure Planet, Daligas and Colorado Energy customers, energy supplies would continue as normal after they were switched over to Shell on Oct. 17.

"Your energy supply will not be interrupted. Shell will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to," said Neil Lawrence, Ofgem's director of retail.

Britain's energy minister Kwasi Kwarteng said this month that more companies could collapse but ruled out providing support for struggling energy firms.

(Reporting by Nina Chestney and Ron Bousso; Editing by Alex Richardson and Louise Heavens)