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UK energy regulator plans for supplier failures with standby advisors - Sky News

UK energy regulator plans for supplier failures with standby advisors - Sky News
UK energy regulator plans for supplier failures with standby advisors - Sky News   -   Copyright  Thomson Reuters 2021
By Reuters

– Britain’s energy regulator Ofgem has signed up insolvency advisors from consulting firm Teneo on standby to help with a possible failure of a large energy supplier which cannot be resolved through existing procedures, Sky News reported on Thursday.

Several British suppliers ceased trading in the past few weeks as wholesale energy prices hit record highs, and tariff caps in the country have created a crisis for smaller firms which are struggling to keep up with rising costs.

Enstroga, Igloo Energy and Symbio Energy went bust on Wednesday, taking the tally of collapsed suppliers to nine.

“Ofgem and (the) government prepare for a wide range of scenarios and have long standing contingency plans in place for any situation as needed. These processes include speaking to a range of organisations,” the watchdog said in a statement.

Ofgem has retained Teneo to act as special administrator if customers of a failed energy company cannot be passed on to a rival through its Supplier of Last Resort system, the Sky report said https://news.sky.com/story/energy-regulator-ofgem-puts-advisers-on-standby-for-emergency-rescue-role-12421885, though such a need has yet to materialise.

Last week, Ofgem had ordered Octopus Energy to supply power to about 580,000 domestic customers of Avro Energy.