Thousands of customers were advised of the next course of action after two utility companies stopped trading.
Ofgem this week confirmed the collapse of Green Network Energy and Simplicity Energy.
And Martin Lewis has now given advice to the 400,000 households that will affect the collapse.
Regulator Ofgen said it would protect customers with Green Network Energy, which previously served gas and electricity to around 360,000 domestic customers, and Simplicity Energy had around 50,000 customers. reports the mirror.
Martin Lewis spoke on Thursday at the ITV Money Show about customers shouldn’t act in a rush.
“You don’t have to do anything yet,” said the money expert to the audience.
“Your supplier will remain the same for now, and Ofgem, the energy regulator, will automatically move you to a new company with a replacement tariff in a few weeks.
“Don’t panic. Your balance is protected and you won’t be locked into a new deal.
“Once you’ve switched, you can look for a better rate. But now you’ll have to wait for Ofgem to find a replacement supplier.”
Philippa Pickford, Director of Retail at Ofgem said, “Green Network Energy and Simplicity Energy customers needn’t worry as we make sure, under our safety net, that your energy supply is secure and domestic customer balances are protected.
“Ofgem will now select a new supplier for you. While we are doing this, we recommend waiting until we appoint a new supplier and not switching in the meantime.
“You can rely on your energy supply as usual. We will update you when we have selected a new supplier who will then contact you with your new tariff.”
Green Network Energy and Simplicity Energy recently suffered a loan default with market operator Elexon, which meant they did not have enough credit to cover the cost of trading gas and electricity to supply their customers.
Peter Earl, Head of Energy at Compare the Market, added: “The energy market is not immune to the difficult environment that many companies are facing as the pandemic continues to weigh on the economy.
“However, Green Network Energy and Simplicity Energy customers have options. Once they have contacted their new supplier, they can look around the market to find a supplier, service and price that is right for them.”
Households with expensive variable standard tariff or those who think they can save money on their bills should use price comparison sites to see if switching suppliers can cut costs.