It comes after the supplier was last week BANNED from taking on new customers until it fixed its "unacceptable" customer service.
Energy regulator Ofgem will now find a new supplier for affected customers while ensuring that their gas and electricity supply continues in the meantime.
If you're affected, don't switch to another supplier – you need to wait until Ofgem puts a new supplier in place.
You should also take a meter reading now, which you can pass on to your new supplier to ensure your bills are accurate.
If you're in credit, this will be honoured by the new supplier.
For those in debt, whether you'll have to repay this will depend on the deal Ofgem strikes with the new supplier.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Economy Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.
“Ofgem will now choose a new supplier for you, ensure you get the best deal possible. While we’re doing this our advice is to ‘sit tight’ and don’t switch.
"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."
The Energy Ombudsman says it was looking into more than 1,300 complaints about the failed supplier.
Six household energy suppliers have already gone bust.
These are Extra Energy, Future Energy, Gen4U, Iresa, Spark Energy, and Usio Energy.
As more and more households switch to small and medium energy suppliers, we take a look at whether they're safe to sign up to.
The Government’s energy price cap took force this month, here’s what it means for your bills.
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