British Gas has been appointed to take on the supply of 18,000 customers after Breeze Energy ceased trading, the energy regulator said.
Ofgem said on Wednesday that Breeze Energy, which has topped Citizens Advice customer rankings in recent months, had ceased trading.
On Saturday, the regulator announced it had appointed British Gas to take on Breeze Energy’s domestic customers following a competitive process.
Ofgem said all outstanding credit balances – including money owed to both existing and former customers of Breeze Energy – will also be honoured, with British Gas absorbing a “significant portion” of these costs.
For existing customers, energy supplies will continue as normal as they are switched over to British Gas on Sunday, it added.
Philippa Pickford, Ofgem’s director of future retail markets, said British Gas will contact customers over the coming days with further information.
She added: “I am pleased to announce we have appointed British Gas for the customers of Breeze Energy.
“Their energy supply will continue as normal and credit balances will be honoured.
“Once the transfer has been completed, customers can shop around for a better deal if they wish to.”
Customers will not be charged exit fees if they decide to switch to another supplier, Ofgem added.