The energy supply and credit balances of the 134,000 customers of now-defunct Toto Energy will remain unaffected after the industry regulator appointed EDF Energy to take them on.
Toto Energy, which was one of the four suppliers which had been given a month to pay £14.7 million owed in green taxes or risk losing their licenses, ceased to trade on Wednesday after missing the deadline.
Ofgem announced on Saturday that it had chosen EDF Energy as the new supplier for the 134,000 customers after a process to ensure they get them “the best deal possible”.
Ofgem director of future retail markets Philippa Pickford said: “I am pleased to announce we have appointed EDF Energy for the customers of Toto Energy.
“Their energy supply will continue as normal and credit balances will be honoured.
“EDF Energy has also agreed to absorb the costs of taking on these customers and outstanding credit balances, which means the extra costs will not fall on the industry or households.
“EDF Energy will be in contact with customers over the coming days with further information.
“Once the transfer has been completed, customers can shop around for a better deal if they wish to.”
Customers who wish to shop around and switch to another supplier will not be charged exit fees, the regulator said.
The failure of Toto comes after more than a dozen energy suppliers have gone bust in the past two years.
The energy ombudsman recently announced that gas and electricity suppliers could face independent checks on their customer service and financial strength.
Ofgem set out a raft of new rules designed to drive up customer service standards, lower the risk of suppliers going bust and strengthen the safety net in the event of failure.
