Energy regulator Ofgem announced today that both firms had ceased trading.

Utility Point supplies gas and electricity to around 220,000 domestic customers, while People’s Energy has around 350,000 domestic customers and around 1,000 non-domestic customers.

Gillian Cooper, of Citizens Advice, said: “With more customers affected at one time than ever before, Ofgem must provide support and protection – especially for those worried about their finances.”

Customers of the two failed firms will continue to receive their energy supply uninterrupted and outstanding credit balances of domestic customers will be protected, the regulator said.

They will be contacted by their new supplier, which will be chosen by Ofgem.

Neil Lawrence, director of retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry. Under our safety net we’ll make sure your energy supplies continue. If you are a domestic customer with credit on your Utility Point or People’s Energy account this is 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 new tariff.”

These are the latest energy suppliers to collapse. Just last week, PfP Energy and MoneyPlus Energy ceased trading, leaving almost 100,000 customers in limbo.