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Evening Standard

National

Holly Williams

Ofgem planning action to cushion energy firms from wholesale price swings

Ofgem Russia Ukraine

Forecasters are warning power bills could soar by almost another £300 from January (Alamy/PA) -

Britain’s energy watchdog has launched a consultation on plans to reintroduce a measure to help protect suppliers from big swings in gas and electricity prices as the Iran war continues to impact wholesale markets.

Ofgem said it was looking at activating its market stabilisation charge, which is designed to help prevent energy suppliers from collapsing when wholesale energy prices fall back sharply amid volatile markets.

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