Non-domestic provider National Gas and Power (NGP) has had its supply licence revoked by Ofgem as it is unable to pay debts of more than £200,000.

The small-scale supplier was operational from June last year and had around 80 business customers. These will be transferred to Hudson Energy which has been appointed as the supplier of last resort by the regulator.

Hudson, a creditor, served a statutory written demand to NGP on 30 May for the sum of £212,113.73 under the Insolvency Act 1986. The demand was not met within the required three-week time frame. Ofgem gave notice to revoke the licence, with effect from today (26 July) “in order to protect the interests of customers”.

In the decision document confirming the appointment of Hudson, Ofgem noted Hudson previously had a “white label relationship” with NPG and was satisfied the pre-existing links will allow for a smooth transition of NPG customers to Hudson.

Ofgem said: “Given that NGP is unable to pay its debts, the authority is not satisfied that the company will be able to continue to provide or otherwise procure the services necessary for supplying electricity to its customers or to pay charges under the industry arrangements.”

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

It has previously been criticised for its licence regime which critics claim is making it too easy for new suppliers to enter the market without the correct processes in place.

In January, Ofgem appointed Green Star Energy, the domestic trading name of Hudson Energy, as the supplier of last resort for the 10,000 customers of Future Energy, which collapsed because of “trading difficulties”.

Ofgem also intervened in November 2016 when Co-op Energy took on 160,000 customers from GB Energy Supply when the small supplier went bust.

Utility Week contacted National Gas and Power for comment but received no response at the time of publication.