Effortless Energy is set to become the first energy supplier to exit the market since the Covid-19 pandemic began, Utility Week understands.
The Stoke-based retailer is understood to have put in a request to Ofgem last month to place its customers through the supplier of last resort (SoLR) process.
Ofgem declined to comment when approached by Utility Week.
The company is believed to currently have around 4,000 customers, down from c.14,000 at the beginning of the year.
According to the Balancing and Settlement Code administrator Elexon the company entered level two credit default last month. At the time of writing, the supplier has still not cleared default.
Effortless was founded in 2013 by Andrew and Melanie Burns after the couple became “frustrated and confused” by the deals being offered by incumbent suppliers.
The company was initially set up to provide energy to friends and family at a competitive price, but later opened the service to the wider community once the costs of running an energy supplier became apparent.
So far in 2020 only one supplier, Gnergy, has entered the SoLR process. Last year however, a total of nine suppliers ceased trading.