Neil Lawrence, Ofgem’s director of retail, said: “I am pleased to announce we have appointed Octopus Energy for the customers of UKEIH. We understand that this news may be unsettling for customers, however they do not need to worry. Their energy supply will continue as normal, and customer credit balances will be honoured.

“Octopus Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to.”

The collapse of UKEIH on 9 July comes just as it was served with a final order requiring it to remove a senior individual from a position of “significant management responsibility or influence” with the company on the basis that the individual is not “fit and proper” to occupy such a role.

Since the start of 2021, nearly 30 energy companies have now collapsed, with 2.7 million customers having been moved from failed energy firms to alternative suppliers.