Source · Select Committees · Business and Trade Committee
Recommendation 24
24
Acknowledged
Paragraph: 104
We support Ofgem’s objective to ensure energy suppliers are well-capitalised and prudently run.
Conclusion
We support Ofgem’s objective to ensure energy suppliers are well-capitalised and prudently run. If its plans to introduce a capital adequacy regime and improve its monitoring of suppliers’ approach to risk management are executed effectively, these measures could reduce the moral hazard in the market and the cost of mutualisation, while stopping the level of unchecked and high-risk growth of suppliers previously seen in the market.
Government Response Summary
Ofgem continues to work with suppliers and the Department to prepare for the implementation of an increased Energy Bill Support Scheme and the Energy Price Guarantee, providing support in scheme design, guidance, enacting Licence Condition changes and monitoring supplier compliance.
Paragraph Reference:
104
Government Response
Acknowledged
HM Government
Acknowledged
Ofgem continues to work with suppliers and the Department to prepare for both the implementation of an increased Energy Bill Support Scheme and the Energy Price Guarantee. These are Government schemes owned by the Department, with Ofgem providing specific areas of support in informing scheme design and guidance, enacting associated Licence Condition changes and monitoring supplier compliance.