Two UK energy suppliers that provided power to hundreds of thousands of UK customers have ceased trading.
Green Network Energy and Simplicity Energy have both revealed they will no longer be trading.
Between them the two companies supplied gas and electricity to around 410,000 customers, who will now be forced to find a new supplier.
Green Network Energy supplied power to 360,000 domestic customers as well as a smaller number of non-domestic customers. Simplicity Energy had around 50,000 domestic customers on its books.
The collapse of the two firms means that energy regulator Ofgem has been forced to step in to protect customers.
Under Ofgem's safety net customers of the two firms will continue to receive an energy supply and any outstanding credit balances will be protected.
Ofgem is now in the process of selecting a new supplier for those affected. Once picked, the new supplier will begin contacting customers directly.
While this process is going on, Ofgem is advising customers not to switch to another energy supplier, and to take a meter reading, ready for when the new supplier contacts them.
Philippa Pickford, director of retail at Ofgem, said: “Green Network Energy and Simplicity Energy 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 are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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.”
