Economy Energy ceased trading on Tuesday, the ninth small UK power supplier within a year to fail, a move expected after regulator Ofgem last week banned the independent firm from taking on new customers due to customer service issues.
In a statement on their website, the company – which entered a credit default on Monday – said Ofgem is appointing a new supplier for its 235,000 customers.
It added: “Customers need not worry, their supplies are secure and credit balances are protected. Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed.”
On Ofgem's website, Philippa Pickford, the regulator's director for future retail markets said: “Our message to energy customers with Economy Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.”
She added: “We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”