Ovo Energy to take on Economy Energy's 235,000 customers

The energy regulator says Economy Energy customers will see their tariffs end and will be automatically moved over to 'Simpler Energy' - Ovo Energy's standard variable tariff.

Ofgem also says Ovo will honour all outstanding credit balances, including money owed to both existing and former customers of Economy Energy.

Economy Energy went bust earlier this week, just one week after it was banned from taking on new customers following a spate of customer complaints throughout the year.

I'm an Economy Energy customer – what happens now?

If you're an Economy Energy customer and you have a credit meter, you'll be contacted by Ovo, while prepayment meter customers will hear from Boost – Ovo Energy's prepayment brand – about what happens next.

You'll be moved across to Ovo Energy on Saturday 12 January, and there'll be no interruption to your energy supply.

• If you're a credit meter customer, your Economy Energy tariff will end, even if it's a fix – though we don't yet know exactly when this will happen. Customers will be automatically moved onto Ovo Energy's standard variable tariff. 

• If you're a prepay customer, you'll be moved over to Boost's standard variable pay-as-you-go tariff. Again, we don't yet know exactly when this will happen. You can continue to top up as normal until you're switched.

Ovo Energy says you should not try to switch away from Economy Energy until it has contacted you. But once you have been, it's important to check the price you're paying and see if you can find a better deal.

Use our free Cheap Energy Club to do a full market comparison and see if you can save by switching. You won't be charged exit fees if you decide to switch to another supplier.

To be safe, it's worth taking a meter reading in the next couple of days, just in case you later have a billing dispute. If you need any further support, Ofgem has a comprehensive set of FAQs.

I'm in credit with Economy Energy – will I get it back?

Yes, Ofgem says all credit balances will be honoured. You can continue to use this to offset future energy use, or request a refund.

If you'd left Economy Energy prior to it stopping trading and are owed credit, this will also be honoured, and you will be contacted directly about the refund by Ovo.

What if I owe Economy Energy money?

If you're a current or former customer who owes money or are in debt to Economy Energy, you should wait to hear from Economy Energy's administrators.

What if I've cancelled my direct debit to Economy Energy?

Ofgem says customers with direct debits should not cancel their arrangement.

If you have done this though, Ofgem says there's no need to panic – you'll be contacted soon to explain how to set a new one up.

What does Ofgem say?

Ofgem's director for future retail markets Philippa Pickford said: "I am pleased to announce we have appointed Ovo Energy, which will offer Economy Energy's customers a competitive tariff for their energy. Their credit balances will be honoured and their energy supply will continue as normal.

"Ovo Energy has also agreed to absorb the costs of taking on these customers and outstanding credit balances, which means the extra costs will not fall on the industry or households.

"Ovo Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to."