Daligas, another UK energy supplier, has ceased trading, regulator Ofgem announced, making it the third provider to collapse this week. It supplies gas to 9,000 domestic and non-domestic customers. Ofgem said it would find a new supplier. Earlier, Pure Planet and Colorado Energy folded, following a sharp rise in wholesale gas prices this year.
It comes as big supplier EDF said it was not ready to take on new customers from more failed firms.
Since September, 12 energy firms have collapsed which has affected nearly two million customers. Ofgem said it would protect customers and advised them to do nothing until a transfer to a new provider takes place in the coming weeks.
Ofgem appoints companies as a "supplier of last resort" for people whose energy company has ceased trading. So far, EDF has taken on 220,000 customers from Utility Point, which went bust a month ago. In January, it was appointed by Ofgem to take over 360,000 households from Green Network Energy. EDF's managing director for customers Philippe Commaret said the company was already working on moving customers from failed company Utility Point.
Commaret said the issue of whether Ofgem can force larger energy firms to step into that role is "the big question at the moment across the industry". "What we are seeing is that the supplier of last resort [process] has worked really well until now and we can be very proud that industry has stepped in in order to help the customers who were in distress," he said.