Customers have been told not to be concerned after two energy suppliers announced they ceased trading.

Edinburgh-based Utility Point and People's Energy, based in Dorset supplies gas and electricity to hundreds of thousands of homes and businesses.

Under Ofgem’s safety net, the energy supply of Utility Point and People’s Energy customers will continue and outstanding credit balances of domestic customers will be protected.

Customers will be contacted by their new supplier, which will be chosen by Ofgem.

Neil Lawrence, Director of Retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry. Under our safety net we’ll make sure your energy supplies continue. If you are a domestic customer with credit on your Utility Point or People’s Energy account this is protected and you will not lose the money that is owed to you.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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.”