Octopus Energy has stepped in to take on Avro’s 580,000 customers after the supplier collapsed last week.
Energy regulator Ofgem said Octopus, which specialises in sustainable household gas and electric, had been chosen after a “competitive process” to get the best deal for Avro’s clients.
Avro’s was one of a series of recent failures in the energy market, sparked by a massive spike in gas prices in recent weeks.
Companies have been selling gas to customers for less than it currently costs to buy from producers, putting them in a tough position if they did not buy ahead.
Green Supplier Limited, PFP, MoneyPlus, Utility Point and People’s Energy have also exited the supply market in the past few weeks.
Avro is based in Hinckley, Leicestershire, while Octopus has based many of its main functions in Leicester.
Ofgem said outstanding credit balances owed to existing and former Avro customers will be paid, and householders transferred to Octopus will be protected by the energy price cap.
Ofgem said supplies to Avro customers will continue as normal, with all those affected contacted in the coming days.
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It has advised people who want to shop around for a better quote to wait until the transfer to Octopus has been completed before switching.
Ofgem said customers who choose to switch will not be charged an exit fee.
Gillian Cooper, head of energy policy for Citizens Advice, said: “Having a new supplier should remove some uncertainty for Avro Energy’s 580,000 customers.
“Their credit balances will be carried over and their new supplier, Octopus Energy, will let them know what their new tariff will be.
“Anyone struggling to pay their bills must be supported and Octopus Energy must make sure that any debt repayment plans Avro Energy customers may have been on before are continued.
Ms Cooper emphasised that certain pensioners and those on low incomes who were eligible for the Government’s warm home discount under their Avro tariff must continue to receive it with their new supplier.
“It’s up to the Government and Ofgem to work with suppliers to ensure this happens,” she said.
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Octopus Energy has only been running since 2015, but already has 2.5 million customers worldwide.
The firm employs around 300 people in Leicester, with an office based in Colton Square, near the city's railway station.