The energy regulator said 2,500 customers will be moved to Octopus Energy, which will honour all outstanding credit balances. This includes money owed to both current customers and to past customers of Effortless Energy.

The news comes after it emerged earlier this week that the small energy provider was ceasing to trade.

Ofgem said customers will be offered a competitive tariff and their energy supply will continue as normal as they switch over to Octopus Energy tomorrow (Saturday 5 September).

They’ll be contacted over the coming days about the changes. If customers want to switch supplier, they can do so and they won’t be charged exit fees if they decide to switch away.

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.”

Ofgem added that Effortless Energy customers with questions should contact Octopus Energy: call 0808 164 1088, email effortless@octopus.energy or visit octopus.energy/go-effortless.