Ofgem has moved to protect consumers from the cost of supplier failures, with the potential introduction of capital adequacy requirements and renewable obligation (RO) receipts.
Following the official announcement of the energy bills freeze over the coming winter by Prime Minister Liz Truss on Thursday 8 September, the government has released the first details of how exactly it will work.
The energy sector has thrown its weight behind a proposal to bring in fixed contracts for existing generators, to help provide them with long-term security and reduce consumer bills in the short-term.
Ofgem has announced new plans to improve the financial health of energy suppliers in an effort to avoid company failures on the scale seen over the last year.
Following Ofgem redistributing the £58,375,203 Renewables Obligation (RO) late payment fund in December to energy suppliers, a further £384,278.28 has been recovered by the regulator.
Ofgem has confirmed that the mutualisation of the Renewable Obligation (RO) has been triggered, as continued turmoil in the energy supplier sector leaves a shortfall of £218,300,151.73.
Ofgem has issued two energy suppliers with final orders and five suppliers with provisional orders over a total of £17.9 million of outstanding Renewables Obligation (RO) payments.
