Avro Energy and Green Supplier Limited have become the fourth and fifth energy suppliers to go out of business this month, it was annouced today.

       Regulator Ofgem said that it would ensure that Avro's 580,000 domestic gas and electricity customers, and Green's 255,000 households would be protected.

       The regulator will choose a new supplier for the households, and said customers should wait to be contacted by their new supplier.

       "I want to reassure customers of Avro Energy and Green Supplier Limited that they do not need to worry. Under our safety net we'll make sure your energy supplies continue," Ofgem director of retail Neil Lawrence said.

       "If you have credit on your Avro Energy or Green Supplier Limited account this is protected and you will not lose the money that is owed to you."

       ITV's political editor Robert Peston tweeted the news and pointed out that Avro Energy was USwitch's best-value-for-money energy provider in 2019 and has 1.2m customers.

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       He added that it "is in financial difficulties, having defaulted on the industry's balancing and settlement code (which is in essence the scheme to satisfy demand for energy that is more than what a company has contracted to buy).

       "An announcement on how customers will be protected is expected from the regulator Ofgem. Normally those customers would be transferred to bigger, less fragile companies under the Supplier of Last Resort Scheme, but it is possible a special administrator would have to be appointed.

       "I am told three other much smaller energy businesses are in trouble. The cost of these rescues, plus this week's of People's Energy, would be well over ￡1bn (industry sources put them at ￡1.1bn), and would be passed on to all of us through our bills.

       "This is as much a cost-of-living crisis as a markets failure. Ofgem refused to comment. I tried to contact Avro but their number was disconnected and the "live chat" facility was down.

       "Ofgem has just announced that Avro and Green energy are ceasing to trade. Avro in fact has 580,000 customers and not the 1.2m I was told (which may be meter points). Green has 255,000 customers. This is a lot of customers."

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