Entice Energy, which comprises both Entice Energy Supply Limited and Simply Your Energy Limited, are to cease trading.
Based in Mansfield, Entice Energy supplies around 5,400 domestic customers.
In recent weeks there has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers, seeing many go bust.
Hinckley-based Avro Energy entered administration in October, preceded by the collapse of Nottingham electricity and gas supplier, ENSTROGA.
Customers of Entice Energy will be contacted by their new supplier, which will be chosen by Ofgem.
Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue. 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 tariff.
“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”