Energy supplier Green has become the latest victim of the crisis engulfing the sector as it collapsed, blaming “unprecedented market conditions and regulatory failings”.

Green, which has more than 250,000 customers and 185 staff, confirmed that it would cease trading a day after Sky News revealed that it had lined up advisers to oversee a potential insolvency.

The announcement came as the head of regulator Ofgem told MPs more suppliers could go bust in coming months after a surge in wholesale gas and electricity prices.

Meanwhile, Sky News revealed that Igloo, another small player in the sector, was close to being added to the list of casualties as it called in advisers – and has stopped taking on new customers.

Green said it was “exiting the market due to the government failing to provide any support to smaller energy suppliers”.

It pointed to market conditions that had seen wholesale electricity and gas prices hitting new record highs, driven by a series of factors from unplanned production outages, Brexit, and severe weather to global demand, the Suez Canal blockage and a recent fire at a cross-Channel interconnector.