Ovo Energy was chosen by Ofgem as a new supplier for 235,000 domestic customers of Economy Energy.
The energy regulator said it had completed a competitive process in order to achieve the best possible deal for customers.
Ovo Energy will honor all outstanding credit balances for Economy Energy customers, including money due to existing and former customers of Economy Energy, and has confirmed that it will offer them a competitive rate.
Supplier: customers of the defunct Economy Energy will be transferred to Ovo Energy
Customers of Warm Home Discount – those living in fuel poverty who receive financial support from energy companies – who have already been approved by Economy Energy will continue to receive payment from Ovo Energy.
The supplier has also agreed to absorb all costs to honor customers’ credit balances and customer migration.
Energy supplies will normally continue for existing customers as they move to Ovo Energy on Saturday 12 January.
Customers with prepay rates are able to continue charging meters as they did previously with Economy Energy and will be contacted by the Ovo Energy prepaid brand, Boost.
For those wishing to change their rates or switch providers, they should ask to switch to another Ovo Energy tariff or look around to find a suitable alternative.
Ofgem has confirmed that if customers decide to change, the exit fees will not be charged.
All Economy Economy customers will be contacted in the next days on the changes.
The director of Ofgem for the future retail markets, Philippa Pickford, said: “I am pleased to announce that we have appointed Ovo Energy, which will offer Economy Energy customers a competitive tariff for their energy.
“Their credits will be honored and their energy supply will continue normally.
“Ovo Energy has also agreed to absorb the costs of hiring these customers and outstanding balances, which means that additional costs will not fall on the industry or on households.
& # 39; Ovo Energy will be in touch with customers in the coming days with more information. Once the transfer is complete, customers can buy a better deal if they wish. ”
Before Economy Energy ceased trading, Ofgem ordered to stop hiring new customers until it improved customer service.
It is the latest in a series of small energy suppliers that have come out of the market in recent times, including Extra Energy, Spark Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U, Usio Energy and One Select.