Under energy regulator Ofgem’s safety net, customers’ gas and electricity supply will continue uninterrupted and credit balances will be protected.

PfP Energy supplies around 80,000 domestic customers, and 5,000 non-domestic customers, while MoneyPlus Energy has approximately 9,000 domestic customers.

Ofgem will now choose a new supplier to take on the firms’ customers.

Customers are advised not to switch provider until a new one has been appointed and they have been contacted.

Instead, they should take a meter reading ready for when the new supplier contacts them.

This should make the process of transferring customers over to the new supplier, and paying back any outstanding credit balances, as smooth as possible.

Neil Lawrence, director of retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, PFP Energy and MoneyPlus 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 PFP or MoneyPlus 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.”