Small energy supplier company Bluegreen Energy who have around 5,900 customers have ceased trading on Tuesday.
Bluegreen Energy told their customers that their power will not be cut off and a new supplier will take them on.
The energy watchdog said that any credit in their accounts are protected and that private customers will also be protected by the Energy Price Cap.
Neil Lawrence, director of retail at Ofgem said, “Ofgem’s number one priority is to protect customers.
“We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue.”
Ofgem has promised to look again at the price cap as the UK’s seventh largest energy firm who have 1.7m customers is on the brink of collapse.
In a letter to suppliers which emerged on Friday, it said, “The unprecedented and unexpected rise in gas and electricity prices over recent months has put energy markets under severe strain.
“As this period of uncertainty continues, and the pressure on the sector grows, we are taking steps to protect the short- and long-term interests of consumers, providing greater certainty for investors and strengthening the resilience of the sector.”
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