Ofgem could force energy suppliers to pay rivals if they lure customers with cheaper deals

A potential return of the market stabilisation charge could force struggling energy suppliers to pay fees to competitors if they attract customers with cut-price deals, according to the UK’s industry regulator. The proposal, outlined in a new consultation, seeks to curb supplier collapses by addressing volatile energy prices tied to geopolitical tensions. Ofgem is concerned that aggressive discounting could trigger a wave of insolvencies this winter. The move reflects growing unease over the sector’s stability amid fluctuating wholesale costs.

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 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. Continue reading...