Energy consumers’ money is to be protected under new financial measures to ensure suppliers can withstand future shocks, Ofgem has announced. The energy regulator has said suppliers will be able to “weather the ongoing storm” of challenges facing the industry, especially over autumn and winter.
Proposals include better protecting consumer credit balances if a company fails, ensuring suppliers have enough money during trying circumstances and allowing firms to have sufficient control over key assets. There will also be a tightening on the level of direct debits suppliers can charge customers.
Jonathan Brearley, CEO of Ofgem, said: “Today’s plans are another step in making sure the complex energy market is fair, resilient and works for everyone. The energy market remains incredibly volatile and there are a number of huge geopolitical issues continuing to apply massive pressure.
