Challenger brand Effortless Energy has entered level two credit default.
According to the Balancing and Settlement Code administrator Elexon the company entered default yesterday morning (30 July) and at the time of writing has still not cleared.
Parties trading on the balancing mechanism are required to post sufficient collateral to cover their outstanding payments in case they go under. Level two default means a party’s outstanding charges amount to more than 90 per cent of its credit cover.
The two directors of the Stoke-based energy retailer, Andrew and Melanie Burns, were also listed on Companies House as directors of Whoop Energy which, until 13 May this year, was known as Go Effortless Ltd. Melanie Burns is shown as having resigned as a director of Whoop Energy on Monday (27 July).
Both Effortless Energy and Whoop Energy are registered by energy regulator Ofgem as having separate supply licences.
Utility Week contacted Effortless Energy for comment but received no response at the time of publication.