Source · Select Committees · Business and Trade Committee
Recommendation 15
15
Acknowledged
Paragraph: 66
We recommend that the Government urgently publishes its long-delayed Strategy and Policy Statement for Ofgem...
Recommendation
We recommend that the Government urgently publishes its long-delayed Strategy and Policy Statement for Ofgem to guide the regulator on how to manage the political and distributional trade-offs intrinsic to its responsibilities and clarify the split of responsibilities between Ofgem and BEIS.
Government Response Summary
Ofgem has been analysing responses to its policy consultation on Strengthening Financial customer credit balances and stress-testing and will share its revised analysis with the Committee.
Paragraph Reference:
66
Government Response
Acknowledged
HM Government
Acknowledged
Ofgem has been analysing responses to its policy consultation on Strengthening Financial customer credit balances and stress-testing (building on the requests in 2021 and March 2022, respectively). that have been put forward, such as ‘ATOL-style insurance’ submitted to the Committee. The results are being used to revise the previous Impact Assessment. Ofgem continues to believe that it is in consumers’ interests for suppliers to not be overly reliant on customer credit balances, recognising that related issues were identified by Oxera and NAO as one of the common drivers of the supplier failures in late 2021–22. Ofgem will share its revised analysis with the Committee and would welcome the opportunity to speak to discuss it in greater detail.