Extra Energy has become the latest small energy supplier to collapse, impacting over 100,000 customers.
The company, backed by Israeli businessman Moti Ben-Moshe, has ceased trading and PwC is expected to be appointed administrator to the firm.
Extra has around 108,000 domestic and 21,000 business customers.
Under regulator Ofgem’s “safety net” procedure, the energy supply of Extra Energy’s customers will continue as normal and outstanding credit balances will be protected.
Ofgem will choose a new supplier to take on Extra Energy’s customers as quickly as possible.
This supplier will contact customers shortly after being appointed, Ofgem said on Wednesday.
Extra’s collapse follows the failures of Future Energy, Iresa Energy, Gen4U and Usio Energy who have all gone bust in 2018.
The market has been hit by stinging regulation, including a government-enforced price cap on standard variable tariffs (SVTs) amid anger over rising bills.
The failure comes on the same day Ofgem announced that new energy suppliers entering the market will have to show they have adequate financial resources and can meet customer service obligations.
Ofgem said the tests should ensure new entrants are robust while encouraging competition and innovation in the market.
Applicants for new supply licences would have to demonstrate to Ofgem that they have the funds and resources to manage their business for at least 12 months after entering the market.
Philippa Pickford, Ofgem’s interim director for future retail markets, said: “If you are an Extra Energy customer, under our safety net, we will make sure your energy supplies are secure. We will also ensure that domestic customers’ credit balances are protected.
“Ofgem will now choose a new supplier and ensure you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can continue to rely on your energy supply as normal. We will update you when we have chosen a new supplier who will then get in touch about your new tariff.”
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