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Written Evidence Published 13 Nov 2022 ↗ View on Parliament

Ofgem’s proposals have drawn a range of reactions from stakeholders across the sector.17 We received written evidence from suppliers who told us that they welcomed aspects of Ofgem’s proposals to improve financial resilience, such as raising capital adequacy requirements and ring-fencing customer credit balances.18 Some suppliers told us that there was scope for the reforms to be more ambitious. For example, SSE and E.ON suggested that Renewables Obligation payments should be made more freque...

Ofgem’s proposals have drawn a range of reactions from stakeholders across the sector.17 We received written evidence from suppliers who told us that they welcomed aspects of Ofgem’s proposals to improve financial resilience, such as raising capital adequacy requirements and ring-fencing customer credit balances.18 Some suppliers told us that there was scope for the reforms to be more ambitious. For example, SSE and E.ON suggested that Renewables Obligation payments should be made more frequently to reduce the costs that would need to be recovered from bill payers via a levy if a supplier fails.19 Some suppliers acknowledged, however, that th Type: conclusion | Number: 11 | Response status: not_addressed Government response: 1.3 As part of ongoing work to improve market stability and limit the risk of high mutualised costs falling to customers, Ofgem has already introduced a number of changes, including: • changes to licence conditions to improve supplier risk management via the Supp