• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 2 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 19 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 6 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 2 days As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 1 day The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 days Never Knew Gasoline Prices were this important!
  • 1 day Plants are Dying
  • 5 hours Emmissions up, renewables nowhere
  • 1 day We Are Better Than This
  • 3 hours Middle East on brink: Oil tankers attacked off Oman
  • 1 day (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020

UK To Review Financial Regulations For Energy Suppliers

Power plant

The UK’s energy market regulator Ofgem will be reassessing later this year whether domestic energy suppliers should meet stricter financial requirements, both before and after being awarded supply licenses, the watchdog’s chief executive Dermot Nolan said on Thursday.

Rising wholesale prices and a growing number of energy suppliers – many of whom are very small – have created a lot of interest in the financial stability of the UK energy sector, Nolan said in a speech at Ofgem’s annual Forward Work Programme event.

There has been concern that very small energy suppliers may not have the financial means to forward-buy energy. Currently, Ofgem can monitor the financials of energy suppliers and in case a company goes bust, the regulator can revoke its supply license and appoint another supplier to serve customers.

“We have had many representations from those who consider we should require companies to meet more significant financial tests both before and after receiving a license,” Nolan said and went on to add:

“So we will review our approach to awarding supply licenses, the financial requirements on suppliers, and how we monitor supplier performance later this year.”

The UK will be looking more closely into the way key markets function, including the retail energy market, Chancellor of the Exchequer Philip Hammond said in his Autumn Statement in November 2016, potentially signaling there will be more scrutiny into how the UK’s Big Six energy suppliers are doing business.

The UK’s energy regulator Ofgem lists the large energy suppliers, often also referred to as the ‘Big Six’, as the companies holding supply licenses and supplying most of the energy to domestic households in the UK market. These six firms are: Centrica plc (the parent company of British Gas), E.ON UK, Scottish and Southern Energy (SSE), RWE power, EDF Energy, and ScottishPower. Apart from the Big Six, there are currently more than 40 other energy suppliers in the UK.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News