British Gas has been appointed Supplier of Last Resort (SoLR) for the latest firm to go bust, Together Energy.
The company will absorb the failed supplier’s 176,000 domestic customers and one business customer.
Funds that have been paid by the customers into their accounts will be protected, Ofgem said.
Energy supplies for Together Energy’s customers will also continue as normal after they switched to British Gas on 23rd January.
That marks the sixth time in the last six months that British Gas takes on customers of failed suppliers.
It had previously taken on customers of Neon Reef Limited, Social Energy Supply, People’s Energy, PfP Energy and MoneyPlus Energy.
Neil Lawrence, Ofgem’s Director of Retail, said: “British Gas will be in contact with customers over the coming days with further information.”
Together Energy, a company half-owned by Warrington Borough Council had previously blamed the increase in wholesale prices for its exit from the market.
Hours after the company’s announcement, the local authority was heavily criticised by MPs for its “reckless policy” to invest in an energy firm.