Usio Energy has become the latest energy supplier to cease trading following the recent demise of Iresa, Gen4U and non-domestic provider National Gas and Power.

Ofgem will choose a new supplier to take on around 7,000 domestic customers of Usio Energy, whose energy supplies will continue as normal.

The regulator said customers’ credit balances will be protected under its safety net. It has advised customers not to switch and suggests they should take a meter reading and wait until they are contacted by the new supplier.

Mary Starks, Ofgem’s executive director for consumers and markets, said: “Ofgem is working to choose a new supplier as quickly as possible.

“Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. Your energy supply will not be affected and will continue as normal – the thing that will change is that your energy will come from a new supplier.”

Ofgem said customers should ask to be put on the cheapest deal or shop around when a new supplier is appointed.

Customers will not be charged exit fees for switching away from their new supplier.

Ofgem’s regulation of small suppliers was under scrutiny following problems coming to light at Iresa. Critics claim it is too easy for new suppliers to enter the market without the correct processes in place.

The regulator is reviewing its approach to supplier licensing and could toughen rules for entry to the energy market.

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