Failing energy firms will cost UK consumers £2.7bn, says watchdog

Ofgem opened up the energy market to smaller players before the price crunch. Photograph: Yui Mok/PA

Consumers will need to pay £2.7bn to cover the costs of 28 energy suppliers failing since June 2021, according to the government’s spending watchdog.

The National Audit Office (NAO) said bill payers had “borne the brunt” of the failures and accused energy regulator Ofgem of creating a market “vulnerable to large-scale shocks”.