Energy supplier Bulb has been put into special administration, but will continue to supply its 1.7 million customers as normal.
The company's exit from the market comes following the collapse of more than 24 suppliers since the start of the year amid the soaring price of wholesale gas. Bulb said it would be placed into special administration - a process designed to protect customers when a large energy supplier can no longer trade.
"We've decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members," the company said on Monday.
It also said: "If you're a Bulb member, please don't worry, as your energy supply is secure and all credit balances are protected."
Bulb's parent company, Simple Energy, will also enter administration, however Bulb's international businesses in France, Spain and the US will continue trading.
Bulb becomes the first company to rely on regulator Ofgem's special administration regime.
In the past, failed suppliers have been small enough for their customers to be picked up by one of their rivals.
An administrator will be appointed to run the company until it is either rescued, sold, or has its customers transferred to other suppliers.
According to reports from Sky News, Bulb's biggest creditor was in discussions about refinancing the business, however, it appears they have now withdrawn that support.
Customer credit balances will also be protected, Bulb said.
Conor Forbes, head of policy with Advice Direct Scotland, said: "A major supplier like Bulb announcing that it will be entering special administration will inevitably cause fresh concern about the future of the UK’s energy suppliers.
“But the key advice to all customers is to do nothing at this stage.
“When any energy firm collapses, there is no loss of energy supply and customers do not lose any money owed to them."
Anyone in Scotland with questions or concerns can contact energyadvice.scot for free, impartial and practical advice by visiting www.energyadvice.scot or calling 0808 196 8660.
Get the latest money-saving and benefits news sent straight to your inbox. Sign up to our weekly Money newsletter here.
