Customers of Scotland-based People’s Energy have been told not to panic after the company ceased to trade.
The energy supplier, with headquarters in Midlothian, which said it set out to end fuel poverty, announced the closure on Tuesday.
A statement said: “We are truly sad that we weren’t able to make this community focused approach to energy supply work.”
The firm is understood to supply gas and electricity to around 350,000 households and around 1000 businesses.
Customers have been advised to read their meters immediately and make a note of the reading or take a photo.
Ofgem, the UK regulator, will choose a new company to supply energy to those affected.
Another supplier, Utility Point, which serves around 220,000 domestic customers, is also ceasing to trade.
Ofgem said: “If you’re a customer, please don’t worry – you can rely on your energy supply as normal.
“We will now switch you to a new supplier.”
A People’s Energy statement read: “We are saddened to inform you that People’s Energy is ceasing to trade.
“Please rest assured that your energy supply is secure and all account credit balances are protected for our domestic customers. This includes any recent top-ups that were made as part of the seasonal weighting initiative.
“Ofgem, the energy regulator, will be appointing a new supplier for all our customers. Their advice is not to switch, but to wait until they appoint a new supplier. This will reduce any risk of disruption in supply and facilitate the transfer of, and access to, domestic customers’ credit balances.”
Colin Mathieson, spokesperson for Advice Direct Scotland which runs the energyadvice.scot service, said the new supplier will be in touch with customers.
He said: “While this news can be worrying for consumers, it’s important to remember that you won’t be cut off if your energy supplier has gone out of business – so you don’t need to do anything right now.
“The gas and electricity regulator Ofgem will arrange for your account to be transferred to a new supplier.
“There won’t be a break in your supply when it’s transferred over, although the price you pay for your energy might go up – and that’s when you can consider switching supplier, and you won’t be charged an exit fee to do so.”