Brilliant Energy Supply has become the third provider to go bust so far this year, as companies struggle with rising wholesale costs, and Ofgem’s new price cap.
The regulator will now have to step in to find a new supplier for the company’s 17,000 customers, a process it has been forced to go through nearly a dozen times in the past year.
Brilliant follows Economy Energy and Our Power, who both went out of business earlier this year.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Brilliant Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.”
Rik Smith, energy expert at Uswitch, said: “Conditions over the last 12 months have been tough for energy suppliers large and small, causing 10 to cease trading.
“However, with wholesale prices on their way back down again, many will be forgiven for thinking we’d seen the end of smaller suppliers struggling to the point of collapse.”