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Uswitch responds to Citizens Advice report on failed energy suppliers

Commenting on the Citizens Advice report which has predicted that UK energy customers are facing a potential bill of £172 million from the collapse of suppliers since January 2018, Richard Neudegg, Head of Regulation at Uswitch.com, said:

“No one wants energy suppliers to go bust and leave customers to potentially foot the bill. Ofgem’s safety net has worked well to ensure no household loses gas or electricity supply in the event of their energy company going out of business. But with 10 smaller suppliers having ceased trading in the last 12 months, it’s time for stronger regulations to minimise the risk of further collapses.

“Likewise, Ofgem needs to ensure that customers with debt are not put in an unreasonable position by the administrators of a failed energy company.

“If existing suppliers run into difficulties, then consumers could be on the hook for more unpaid bills. There needs to be a system of regular stress-tests for suppliers to minimise the risk they will cease trading and ensure they meet their financial obligations. The current system for the funding of the Renewable Obligations scheme has clearly caused issues for some providers, therefore it’s prudent to ask whether it could be improved.

“Switching remains the most effective way for bill-payers to escape higher prices and access huge savings, so it’s important that consumer confidence in the market is maintained. More stringent tests for new entrants will go some way to improving the situation, but they should not be the only ones placed under the microscope. Existing providers must be kept in check as well – with ongoing fit-and-proper person tests for the controllers of energy companies.”

FOR MORE INFORMATION

Tim Dunford

Phone: 020 3872 5612

Mobile: 07785 552666

Email: tim.dunford@uswitch.com

Twitter: @uswitchPR

Notes to editors

The Citizen's Advice research, which estimates that energy customers are facing a potential bill for the collapse of 11 energy companies since January 2018, will be published at 00.01 on Friday 21 June can be found here.

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