Ofgem has appointed EDF Energy to take on failed supplier TOTO Energy’s 134,000 domestic customers.
The news comes after the regulator announced TOTO Energy was the latest supplier to go bust last week – the 16th energy company to cease trading since the beginning of 2018.
Many of TOTO’s customers are expected to see a reduction on their energy bills as EDF Energy is offering customers a competitive tariff.
All outstanding credit balances, including money owed to both existing and former customers of the bust supplier, will also be honoured.
Customers will be contacted over the coming days and their accounts will be set up over the next few weeks but if they wish to switch to a different company, they will not be charged any exit fees.
Philippa Pickford, Ofgem’s Director of Future Retail Markets, said: “I am pleased to announce we have appointed EDF Energy for the customers of TOTO Energy. Their energy supply will continue as normal and credit balances will be honoured.
“EDF Energy has also agreed to absorb the costs of taking on these customers and outstanding credit balances, which means the extra costs will not fall on the industry or households.
“EDF Energy 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.”
The news comes after the regulator proposed introducing a new series of checks and tests to improve customer service and reduce the risk of supplier failure.