Energy supplier Economy Energy, which was recently banned from taking on new customers, has collapsed. The supply to its 235,000 domestic customers will continue, any credit they have will be protected, and a new supplier will take on their accounts. Regulator Ofgem said a new supplier would be appointed as soon as possible. On Friday, it had ordered the company to improve customer service. Economy Energy is the latest of a host of small suppliers to fold. Troubles

Customers had spoken of problems with disputed account balances, the firm's failure to issue refunds, and concerns over billing delays. The Energy Ombudsman said it was looking into 1,303 complaints about the failed supplier. Economy Energy had posted a message on its website saying that after "recent speculation and circulating misinformation" it had "no intention of closing our doors".However, Ofgem stepped in on Friday, banning the company from taking on new customers for three months to ensure it improved its customer procedures. The regulator said Economy Energy had to address billing and payment failures, and issue customer refunds in a timely manner.

Now, just a few days later, the business has ceased trading. What should customers do?

Ofgem said that Economy Energy customers should not do anything at the moment, apart from taking a fresh meter reading. Prepayment meters can be topped up as normal. They will be told which supplier is taking on their gas and electricity service, and from that point they will be told about their new tariff and opportunities to switch. Some customers, who pay a set amount by direct debit each month, will have paid more than the energy they have used. This credit will be protected by the new supplier, so will not be affected.