Ofgem unveils new energy ‘rules’

BRITAIN’S energy regulator plans to strengthen the sector after a string of collapses left households with a £9.2bn bill.

But ofgem has been criticised for failing to protect customers, as thousands faced losses after the implosion of their supplier.

Rocketing energy prices following Russia’s invasion of ukraine led to 29 companies, including Bulb, Igloo Energy and Avro Energy, tumbling into administration.

Bulb is now being run by the Government at an estimated cost to the taxpayer of £6.5bn. Customers of the rest transferred to a handful of suppliers at a cost of £2.7bn, which has been spread across the country’s bills. The sum includes the cost of reimbursing those who built up credit on bills.

ofgem has now dropped plans to force suppliers to ring-fence customers’ deposits, and was accused by Chris o’Shea, boss of British Gas owner Centrica, of an ‘abdication of responsibility’. The regulator has also been accused by MPs of ‘closing the door after the horse has bolted’.