Gas and electricity provider One Select energy has ceased trading affecting 36,000 customers.

It comes just days after Citizen’s Advice named it worst in the market for customer service.

The good news is that under Ofgem’s safety net, households will continue as normal for the time being, however the regulator is in talks for a takeover supplier to replace those affected.

The outstanding credit balances of domestic customers will be protected.

Ofgem’s advice to One Select’s customers in the meantime is to not switch to another provider and take a meter reading ready for when your new supplier contacts you.

It said this will make the process of transferring and paying back outstanding credit balances, as smooth as possible.

Philippa Pickford, Ofgem’s interim director for future retail markets, said: "“Our message to energy customers with One Select is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.

“Ofgem will now choose a new supplier for you, ensure you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. 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.

“We have seen a number of supplier failures this year and our safety net procedures are working as they should to protect customers.”

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Emma Bush, energy expert at uSwitch.com, said: "Well run small suppliers not only offer cheaper tariffs but also outperform the bigger players in areas like customer service, green energy, and easy account management.

"Although a small number of energy companies have ceased trading this year, the Ofgem safety net means their customers have nothing to fear as their energy supplies will continue uninterrupted and their credit balances are protected.

“A handful of suppliers entered the winter period with little room for manoeuvre.

"Unexpectedly high demand thanks to the Beast from the East has helped push up commodity costs, while switching volumes have reached near-record levels.

"Companies which have less capital available, have been struggling to pay policy obligations, or are having problems with internal processes such as billing or collecting payments are therefore going to find conditions challenging in the current environment.”

Will my bills go up?

That depends on who takes on the business.

When GB went under, its customers were moved to Co-Op. In that case, people stayed on the deal they were on before – meaning their bills stayed the same – and were able to switch at the end of their deal.

But when Iresa energy went under the customers were moved to Octopus Energy. This time customers were put on Octopus’ cheapest tariff – but told they could switch penalty-free if they weren’t happy with it.

In both cases, however, customers were told not to cancel their direct debits or try to switch until their new provider got in contact.

Ofgem is in the process of choosing a new supplier to take on One Select’s customers as quickly as possible.

Updates are available from its website www.ofgem.gov.uk or through our twitter feed @ofgem.

Customers who have questions should visit the FAQs on its website at www.ofgem.gov.uk/ofgem-safety-net. Or if they need additional support, call Citizens Advice on 03454 04 05 06 or email them via their webform.

Alternatively, get in touch through Ofgem’s facebook or twitter feed @ofgem.

So how worried should I be about a smaller supplier?

The answer here is not overly.

The protections in place mean your energy supply is secure, and if something goes wrong you will be moved to a new supplier pretty seamlessly with your in-credit balance in tact.

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