ScottishPower has been appointed by Ofgem to take on the customers of Tonik Energy after it ceased trading.
Around 130,000 domestic energy customers will now move to ScottishPower following a competitive process run by the regulator.
All outstanding credit balances, including money owed to both existing and former domestic customers of Tonik, will be honoured by ScottishPower.
A dedicated phone line and call centre will also be operational for customers.
Andrew Ward, ScottishPower CEO, UK Retail said: “We would like to welcome Tonik Energy customers to ScottishPower. They are joining a safe and stable integrated energy company focused on achieving net zero through a green recovery.
“We understand that this can be a stressful time but we would like to reassure every one of our new customers that they do not need to worry and should sit tight. We will be in touch soon about what we will do next to ensure everything runs smoothly over the next few weeks.”
Ofgem added customers can shop around and switch suppliers if they wish to and will not be charged exit fees for doing so.
Philippa Pickford, Ofgem’s Director of Retail, said: “I am pleased to announce we have appointed ScottishPower for the customers of Tonik Energy. Their energy supply will continue as normal and domestic customer credit balances will be honoured.
“ScottishPower 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.”