Energy supplier Solarplicity has ceased trading, Ofgem has said.
The firm has around 7,500 domestic customers and fewer than 500 business customers.
Ofgem said Solarplicity customers’ energy supply would continue as normal and prepayment meters can also continue to be topped up.
The outstanding credit balances of domestic customers will be protected.
Ofgem will choose a new supplier to take on all of Solarplicity’s customers. This supplier will contact these customers shortly after being appointed.
Ofgem advised affected customers not to switch to another energy supplier until a new one has been appointed and made contact.
They should take a meter reading ready for when the new supplier makes contact to make the transfer process as smooth as possible.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Solarplicity customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
“Ofgem will now choose a new supplier for you and whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can 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.”
The Energy Ombudsman said it had received 3,324 complaints about Solarplicity so far this year, mainly about billing, switching and customer service, including 583 in July alone.
Matthew Vickers, chief executive at the Energy Ombudsman, said: “From what we have seen in the complaints that we handle, Solarplicity failed to provide a good level of customer service.
“Its collapse doesn’t come as a huge surprise, but it will be another source of stress for the company’s customers – many of whom have already experienced problems.”