Ofgem has promised to protect customers of Effortless Energy Ltd after the gas and power supplier announced it is ceasing trading.

Effortless Energy Ltd, which traded as Go Effortless Energy, had around 2,500 domestic customers and a small number of non-domestic customers – all customers will continue to receive an energy supply and their outstanding credit balances will be protected.

Ofgem will choose a new supplier to take on all of the failed firm’s customers.

Philippa Pickford, Director of Retail at Ofgem, said: “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.”