Energy supplier Economy Energy has collapsed after regulator Ofgem banned it from taking on new customers until it improved its customer service.
In a message posted on its website, Economy Energy said Ofgem is appointing a new supplier for its customers.
“Customers need not worry, their supplies are secure and credit balances are protected,” it said.
The regulator initially imposed the ban on January 4 for up to three months to allow Economy Energy to take steps to:
Ofgem said it took the action due to the decline in the standards of Economy Energy’s customer service, complaints handling processes and standards, and billing and payment procedures.
However, just four days after the ban’s imposition, Economy Energy has ceased trading. Its statement added: “Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed. This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible.”