Reforms designed to protect customers and ensure energy suppliers are resilient to market shocks have been proposed by the energy regulator, however, British Gas owner Centrica accused Ofgem of an “abdication of responsibility.”
On Friday, Ofgem released fresh proposals which included stamping out the misuse of credit balances, reinforcing rules on how all domestic providers use customer balances.
Also put forward was a requirement for suppliers to ring-fence money they need to buy renewable energy.
It also proposed setting a minimum amount of capital that suppliers must hold so the regulator can be reassured they can withstand future shocks.
Ofgem said it is seeking feedback on the plans and hopes to publish the reforms in the spring….