To ask the Secretary of State for Business, Energy and Industrial Strategy, how many energy suppliers have been investigated by Ofgem for the purpose of Ofgem undertaking its financial responsibility to protect customers against mutualisation of costs in the event of energy supplier failure.
27 July 2021
Ofgem closely monitors suppliers’ ability to meet their customer service and financial obligations. Ofgem are actively implementing the new rules in relation to financial responsibility, and will take action where there is a risk of consumer detriment. A range of tools is available to tackle poor behaviour, including enforcement action.
Mutualisation mechanisms play an important role in supporting the effective functioning of the energy market. Ofgem aims to ensure that suppliers do not behave in a manner that increases the likelihood or scale of costs to be mutualised across their competitors, and ultimately consumers, if and when they fail.