Bluegreen Energy supplied about 5,900 domestic customers and a small number of non-domestic customers.

Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.

A huge spike in wholesale gas prices has led to the collapse of several small providers in recent weeks including Avro Energy, Utility Point, People’s Energy, PfP Energy, Green Supplier and MoneyPlus Energy.

Bluegreen is the fifth supplier to collapse this month, and the 14th since the start of September. Customers of the firm will be contacted by their new supplier, which will be chosen by Ofgem.

Ofgem’s advice to affected Bluegreen customers in the meantime is to wait until a new supplier has been appointed and been in contact before looking to switch to another energy supplier. Customers should take a meter reading ready for when the new supplier contacts them.

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. If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.

“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”