Richard Neudegg, head of regulation at Uswitch.com, said: “Introducing financial stress testing after 26 energy providers have exited the market feels like the very definition of shutting the stable door after the horses have bolted.
“Financial testing should have been used to identify the suppliers that were ill-equipped to handle the shocks that have rocked the market. While necessary for the future, these proposals are clearly too late to help the current crisis.
“Ofgem’s priority must now be to build a resilient market that can stand strong in the face of any future shocks.
“The way the price cap works has also been a major factor in the current energy crisis. It is currently delaying the pass-through of the full shock to the system for consumers, but the regulator cannot prevent this coming in April.
“Ofgem is considering changes to tariffs that seem intended to bolster the surviving larger suppliers, and to ensure that they get enough money out of customers to cover crisis losses partly through reducing the escape routes available to households.
“Make no mistake, a lot of pain is coming for consumers when energy bills rise from April. It brings into stark contrast how inadequate current support for the most vulnerable households is, making it critical that more is done to support those who need it most.”
Uswitch is the UK’s top comparison website for home services switching. We’ve saved consumers £2.5 billion off their energy bills since we launched in September 2000, and also help people find a better deal on their broadband, mobile and TV.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.