Ofgem could force energy suppliers to pay rivals if they lure customers with cheaper deals
Source: The Guardian ·
Regulator for Great Britain weighs up reintroducing market stabilisation charge to prevent firms going bustEnergy suppliers could be forced to pay a charge to rivals if they lure customers with cheaper deals, as the industry regulator for Great Britain attempts to prevent suppliers going bust this winter.Ofgem has published a consultation on a proposal to reintroduce the market stabilisation…
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Energy suppliers could be forced to pay a charge to rivals if they lure customers with cheaper deals, as the industry regulator for Great Britain attempts to prevent suppliers going bust this winter. Ofgem has published a consultation on a proposal to reintroduce the market stabilisation charge (MSC), which aims to prevent suppliers failing if there is customer exodus, as it frets over the impact of sharp swings in energy prices linked to the conflict in the Middle East. The charge was last activated between April 2022 and March 2024, when Russia’s invasion of Ukraine sparked soaring wholesale prices that caused more than 30 energy companies to go bust. “We’re preparing for what is likely to be a difficult winter for many households,” said Neil Kenward, the interim director general of markets at Ofgem. “While the energy market is stronger than it was during the energy crisis, volatility remains and the market stabilisation charge helps to protect consumers from that volatility. “In…