Economy Energy has gone bust, making it the ninth small supplier in the UK market to do so in less than a year.
The firm’s customers, which number at nearly a quarter of a million, have been advised by Ofgem to take meter readings and wait to be transferred to a new supplier.
The 235,000 consumers signed up to the challenger firm may have expected the collapse – the company entered credit default on Monday, after having been banned from taking on new contracts only days ago following a raft of customer complaints.
A statement on the company’s website reads: “Economy Energy has ceased to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.
“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. This will help make sure that the process of handing customers over to a new supplier and honouring credit balances, is as hassle free for customers as possible.”