TOTO Energy has become the 16th small supplier to go bust since the beginning of 2018.
The company, which has around 134,000 domestic customers, had bought 44,000 of failed supplier Solarplicity’s retail customers in July.
Ofgem said energy supply of TOTO Energy’s customers will continue, their outstanding credit balances will be protected and prepayment meters can be topped up as normal.
Customers are being advised to take a meter reading and not to switch to another supplier until a new one has been appointed.
This will ensure the process of transferring customers to the regulator’s chosen supplier and paying back any outstanding balances is as smooth as possible.
The news comes days after the regulator proposed introducing a new series of checks and tests to improve customer service and reduce the risk of supplier failure.
Philippa Pickford, Ofgem’s Director for future retail markets, said: “TOTO Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and customers’ credit balances are protected.
“Ofgem will now choose a new supplier for you and whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. 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 new tariff.”
