Tonik Energy has gone bust and is ceasing to trade.

The gas and electricity supplier provided around 130,000 domestic customers with their energy – these customers will continue to receive a supply and Ofgem notes the outstanding credit balances of domestic customers will be protected.

Ofgem will now select another supplier to take on these customers.

Philippa Pickford, Director of Retail at Ofgem, said: “Tonik 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 are 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.”