Ofgem proposes plan to make failed energy suppliers responsible for rivals' costs, aiming to reduce £2.7bn cost and £94 added to average household bills due to 29 supplier collapses.

The UK energy regulator, Ofgem, has proposed a plan aiming to reduce financial impact on households when energy suppliers go bankrupt. The new plan suggests that failed suppliers should be responsible for costs incurred by their rivals who take over their customers. If implemented, the new rules could potentially reduce the £2.7 billion cost and £94 added to the average household's bill caused by the collapse of 29 energy suppliers between July 2021 and November 2022. The plan also aims to prevent similar collapses in the future, making suppliers more financially stable and ensuring that customers are protected from bearing the costs of a supplier's failure.

February 09, 2024
7 Articles

Further Reading