The small gas and electricity supplier with around 2,500 domestic customers, has ceased to trade.

Under regulator Ofgem’s safety net, energy supply will continue, and outstanding credit balances will be protected.

Ofgem will choose a new supplier to take on all of Effortless Energy’s customers.

But for now, the regulator is advising customers to sit tight and not switch to another energy supplier until a new one has been appointed and been in contact.

However, customers should take a meter reading now, ready for when the new supplier gets in touch. Ofgem said this will make the process of transferring customers over to the chosen supplier, and paying back any outstanding credit balances, as smooth as possible.

Once the new supplier has been in contact, customers can ask to be put on the cheapest deal or shop around for a better deal from another supplier. They won’t be charged exit fees for switching away from their new supplier.

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 while 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.”

Since 2018, more than 15 small energy suppliers have gone bust, impacting more than one million customers.