Ofgem unveils new energy rules but ‘fails to protect’ customer deposits

Some energy firms have argued that customer credit should be ringfenced to prevent suppliers from using consumers’ money for other corporate purposes. Photograph: Simon Dack/Alamy

The energy regulator has been criticised for failing to protect consumer deposits despite fresh attempts to shield households after taxpayers had to pick up a £9.2bn bill when suppliers went bust.

Almost 30 energy suppliers have collapsed since the start of the energy crisis. The collapse of Bulb, by far the largest failure, has been estimated to cost the taxpayer £6.5bn alone, while the remaining failures will cost consumers about £2.7bn. Many of the failures were because of the weak balance sheets of suppliers, which were exposed when the wholesale price of gas began to rise rapidly.