Energy supplier Bulb has been put into special administration but will continue to supply its 1.7 million customers as normal, it has been announced.
The company's exit from the market comes following the collapse of more than 20 suppliers since the start of the year amid the soaring price of gas.
Bulb said it would be placed into special administration, a process designed to protect customers when a large energy supplier can no longer trade.
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"We've decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members," the company said on Monday.
"If you're a Bulb member, please don't worry, as your energy supply is secure and all credit balances are protected."
Bulb's parent company, Simple Energy, will also enter administration. However Bulb's international businesses in France, Spain and the US will continue trading.
London headquartered Bulb becomes the first company to rely on regulator Ofgem's special administration regime.
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In the past, failed suppliers have been small enough for their customers to be picked up by one of their rivals.
An administrator will be appointed to run the company until it is either rescued, sold, or has its customers transferred to other suppliers.
According to reports, Bulb's biggest creditor was in discussions about refinancing the business, however, it appears they have now withdrawn that support.
Customer credit balances will be protected, Bulb said.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “This signals the tipping point of the 海角视频 energy crisis. With Bulb’s 1.7 million customer base, over four million people have now been directly impacted by the turbulent energy market.
“But it’s not just Bulb’s size as the seventh largest supplier that makes this so significant. Unlike some of the smaller suppliers who recently ceased to trade, Bulb operated with a strong business model combined with a competitive offering for consumers.
“Ultimately this demise wasn’t caused by a badly run business model. Instead, Bulb was choked off by the way the Government decided to structure the current energy market with the price cap.
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“The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected."
Walid Koudmani, market analyst at financial brokerage XTB added: "Bulb energy’s collapse continues to highlight the bleak situation which has already seen a number of other energy providers fold under increasing costs and the inability to provide advertised services to their customers.
"As today’s announcement further reduces competition in the market, it could lead to a scenario where only a small number of major players are left in the energy market once issues are settled and things return to normal."
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