Gas and electricity supplier Hub Energy has announced it has ceased to trade.
The announcement is expected to affect around 6,000 domestic and 9,000 non-domestic customers.
The company said: “Customers need not worry, their supplies are secure and domestic credit balances are protected.”
Under Ofgem’s safety net, the customers will be protected until the energy regulator will choose a new supplier to take over.
For this reason, Ofgem advises the customers of the failed supplier not to switch to another company until a new one has been appointed and to take a meter reading ready for when they will be contacted.
Neil Lawrence, Director of Retail at Ofgem, said: “I understand that a supplier going out of business is unsettling for customers, however, Hub Energy customers do not need to worry.
“Under our safety net we will make sure your energy supplies continue and if you are a domestic customer and have a credit on your bill with Hub this is protected and you will not lose the money that is owed to you by Hub.”