Octopus Energy is Supplier of Last Resort for Effortless Energy Customers

Second Energy Supplier to close this year

It was announced on September 2^nd that Effortless Energy was shutting its doors after it struggled to overcome the challenges created by the Covid-19 pandemic. It became the second energy supply company to close in 2020.

All 2,500 of Effortless Energy’s further customers will now be transferred to Octopus Energy who are seeking to rapidly expand its customer base over the next few years. The company’s CEO recently told the press that he has ambitions to increase the number of customers by the millions and become the UK's largest energy supplier.

Read more: What is a Supplier of Last Resort?

The closure of Effortless Energy makes it the second energy supplier to shutter this year, but concerns are growing that more suppliers could go under as a result of the challenges created by the Covid-19 pandemic.

In March, GnERGY ceased business after failing to pay the £673,876.62 plus interest for what it owed to the Renewables Obligation buy-out fund.

In 2019, 16 energy suppliers closed as a result of market challenges so the fact that despite Covid-19 only 2 have so far ceased trading shows that suppliers have become more resilient and better organised.

However, with the government’s furlough scheme set to end next month, it remains to be seen how well the sector will ride out the storm.

Read more: GnERGY ceases trading after failing to pay its Renewables Obligations

What happened?

Effortless Energy, which trades under the title Go Effortless Energy, announced on September 2^nd that it was to cease trading.

Energy suppliers with a high percentage of industrial and manufacturing customers have been hit particularly hard due to the Coronavirus lockdown.

Many businesses and producers were forced to shut down to prevent the spread of the virus leaving many industrial plants and office buildings closed and no energy being used.

Philippa Pickford, Ofgem’s director of retail, said: “I am pleased to announce we have appointed Octopus Energy for the customers of Effortless Energy. Their energy supply will continue as normal and domestic customer credit balances will be honoured.

“Octopus Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to.”

Octopus Energy continues to grow

With the acquisition of Effortless Energy’s customers, Octopus Energy continues to grow. Its CEO recently revealed the companies ambitious target of becoming the UK’s largest energy supplier by 2025.

The company has grown steadily the last few years after it attained 22,000 customers from Affect Energy, was appointed the SoLR for Iresa which bagged it 100,000 customers and last year added a further 300,000 after purchasing Co-op Energy.

Octopus Energy now supplies more than 1.5 million customers with 100% renewable electricity and carbon-offset gas.

Further Reading

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

Covid-19’s impact on smart meter installations revealed

Is ‘Green Energy’ really good for the environment?

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