Breeze Energy, which supplies just under 18,000 domestic customers, has become the latest supplier to go bust.
Ofgem will now choose a new supplier to take on all of the energy company’s customers, who will be contacted shortly after being appointed.
Customers are being advised not to switch to another supplier in the meantime and take a meter reading for when the new company contacts them.
This will make the process of transferring customers over to the chosen supplier and paying back any outstanding credit balances as smooth as possible.
Last month, Ofgem ordered Breeze Energy to pay more than £486,200, including interest, in Renewable Obligation taxes.
Philippa Pickford, Ofgem’s Director for future retail markets, said: “Breeze Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic 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.”