Yorkshire Energy, which has operated for two and a half years, is the latest energy provider to cease trading this year.
The energy watchdog is now looking for a new supplier for the firm’s 74,000 customers.
In the meantime, households’ energy supply will continue as normal and credit balances will be protected.
It is the latest challenger supplier to go bust following a number of failures including Tonik, Breeze, Economy Energy, Solarplicity, and Spark Energy.
Collapse: Yorkshire Energy is the latest challenger supplier to cease trading this year
Ofgem has advised Yorkshire Energy’s customers not switch to another energy supplier until a new one has been appointed.
The watchdog has also urged customers to take a meter reading ready for when their new supplier contacts them.
Philippa Pickford, director of retail at Ofgem, said: ‘Yorkshire 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.
‘We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.’
Experts believe the pandemic may have played a part in the downfall of the firm.
Will Owen, energy expert at Uswitch, added: ‘Challenger energy brands such as Yorkshire Energy operate on small margins, and many have been affected by the lockdowns causing customers to delay or miss payments.
‘Yorkshire Energy customers should wait until they know the details of the new energy company selected by Ofgem before they try to switch to another provider.
‘In the meantime, we urge customers to note down their meter readings now, and do so again when contacted by a new supplier so they can ensure the bills are accurate.
‘Once you know your supplier, and the tariff you have been offered, it is worth comparing prices to check if switching to another provider will offer better value for money. You will not be charged exit fees for moving to another supplier.’
Customers are encouraged to use price comparison sites to see if they could save money on their energy bills by switching to another provider or moving to a cheaper tariff.
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