Source · Select Committees · Business and Trade Committee
Recommendation 11
11
Accepted
Paragraph: 62
We expect Ofgem, as the independent regulator, to clearly outline to Ministers and Parliament the...
Conclusion
We expect Ofgem, as the independent regulator, to clearly outline to Ministers and Parliament the risks and consequences associated with the delivery of Government objectives. We do not believe that Ofgem properly raised the risks to Government, or Parliament, that a deregulatory approach to promoting competition could severely undermine the financial resilience of the energy supplier market.
Government Response Summary
Ofgem has worked with Government to introduce the Public Interest Business Protection Tax and is committed to working with suppliers and Insolvency Practitioners to ensure current rules and Consumer Protection regulations are adhered to.
Paragraph Reference:
62
Government Response
Accepted
HM Government
Accepted
failure, including ensuring timely return of credit balances and that customers in debt are supported. There are limits to Ofgem’s ability to act in this area, as it does not have powers over Insolvency Practitioners. However, Ofgem is committed to working with suppliers and Insolvency Practitioners to ensure current rules and Consumer Protection regulations are adhered to. Ofgem has worked with Government to introduce the Public Interest Business Protection Tax. The objective of the tax is to deter companies in the energy market and their shareholders taking steps to monetise valuable assets for their own benefit, causing the company to go into either the Special Administration Regime or Supplier of Last Resort process and if that does occur to recoup costs that might otherwise fall on the general body of taxpayers and on consumers. The tax applies where profits are greater than £100m. once a company fails. Responses to the Committee’s Third Report of Session 2022–23 23