Economy Energy has ceased to trade just days after energy regulator Ofgem barred it from taking on new customers.
After failing on Tuesday, the company that used to provide energy to 235,000 consumers in the UK became the first small provider to collapse in 2019, continuing a recent trend that saw eight “challenger” companies fail last year.
A statement on its website said: “Economy Energy has ceased to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.”
Philippa Pickford, Ofgem’s director for future retail markets, said: “We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.
Existing energy suppliers on the market have complained about the level of failures across new entrants – the cost of which is passed on to other suppliers to pay.
Ofgem has announced plans to heighten entry requirements, requiring firms to have enough funds to support themselves for a minimum of twelve months.
The watchdog investigated 399 complaints into Economy in November in comparison to 112 last January, with key issues being disputed account balances, failure to issue refunds and concern over billing delays.