Go Effortless is first energy sector casualty of coronavirus
GO EFFORTLESS is set to become the energy sector’s first victim of the pandemic as the supplier begins a formal process of exiting the market.
The Stoke-based supplier, which has been offering gas and electricity since 2014, has informed energy regulator Ofgem that it intends to enter the Supplier of Last Resort (SoLR) scheme, industry sources say.
The mechanism revokes a company’s licence to sell energy and transfers customers to a new supplier.
The scheme is designed to avoid households being left without energy because their supplier has gone bust. Ofgem will now begin searching for a suitable supplier to take on Go Effortless Energy’s customers.
It marks the first time an energy supplier has left the market since the start of the Covid-19 pandemic. There is growing concern among suppliers that some customers will not be able to pay for their gas and electricity in the coming months if they are made redundant once the Government’s furlough scheme ends.
A number of suppliers have told The
Daily Telegraph that some customers are cancelling direct debits – an early indication they are struggling to make payments.
Go Effortless co-founder Andrew Burns said he could not comment until Ofgem made an announcement. Ofgem declined to comment.
Commercial customers such as restaurants and shops are particularly at risk of delinquency as their revenues have been hit the hardest by coronavirus lockdown measures.
Struggling energy suppliers were thrown a £350m lifeline in June by Ofgem as it fights to prevent a wave of bankruptcies.