Effortless Energy ceases trading

What happened?

Tough times ahead?

Concerns over the viability of several energy supply companies have grown in recent months due to the impact of the Covid19 pandemic. Of particular concern are worries over increasing bad debts and the rising number of customers not paying their energy bills.

The virus lock down has created numerous issues for energy companies including having to furlough staff, the sharp decline in energy usage from industry and businesses and the economic impacts of the UK sliding into its worst recession in decades.

With the UK government’s furlough scheme due to end in October some suppliers are increasingly worried that a spate of redundancies could result in more customers unable to pay.  

In June, Ofgem provided a £350 million support scheme to help energy suppliers stave off bankruptcies and buy them more time to get their finances into a healthier position. The scheme predominately supported smaller energy suppliers as they typically have a tougher time attaining loans.

Read more: Ofgem announces £350 million support scheme to help struggling energy suppliers

“Effortless Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.

“Ofgem will now choose a new supplier for you and whilst 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,” said Philippa Pickford, Director of Retail at Ofgem.

If you are a Go Effortless customer, Ofgem advises that you:

• Not switch to another energy supplier until a new one has been appointed and you have been contacted by them in the following weeks.
• Take a meter reading ready for when your new supplier contacts you.

Further Reading

Unprecedented rebellion on the cards as energy companies protest Ofgem pricing plans

British Gas to pay out £1.73 million for prepayment failures

Octopus Energy aiming high as it seeks to become the UK’s largest energy supplier

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