Economy Energy has ceased trading.
The supplier, which had around 240,000 domestic accounts, is the latest casualty of the independent energy supply market and its closure was widely anticipated.
Ofgem will now appoint another supplier to take on its customers and ask other energy companies to pick up the tab for its levy liabilities.
Energy market experts have predicted that more companies will collapse do to risk mismanagement and inadequate finance.
Some have suggested the domestic market “could implode” due to spiralling levels of debt, with even a large, ‘big six’ supplier at risk of going bust.