Many British energy firms, often supplying both gas and electricity to homes and businesses, have struggled with soaring wholesale energy costs because of the regulator's price caps, which limits how much of the price rise they can pass on.
Daligas has about 9,000 domestic and non-domestic gas customers, Ofgem said. A new supplier will be found for customers and any credit a customer has would be protected.
Two other suppliers, Pure Planet and Colorado Energy, ceased to trade on Wednesday and 12 suppliers have collapsed since the start of September, meaning almost 2 million customers have had to be transferred to new suppliers.
Britain's domestic price cap rose 12%-13% from Oct. 1 but wholesale prices have risen far higher since that cap was set in August.
Analysts have said the difference between wholesale energy prices and prices suppliers can charge is about 400 pounds ($545) per customer per year.
Britain's energy minister Kwasi Kwarteng said last week more companies could collapse but ruled out providing support for struggling energy firms.
(Reporting By Susanna Twidale; Editing by Andrew Heavens)