Written question asked by Lord Taylor of Warwick (Non-affiliated) on Wednesday, 5 July 2023, in the House of Lords. It was due for an answer on Wednesday, 19 July 2023. It was answered by Lord Callanan (Conservative) on Tuesday, 18 July 2023 on behalf of the Department for Energy Security and Net Zero.
Energy Supply: Finance
- Question
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To ask His Majesty's Government what steps they are taking to protect customers' interests by ensuring financial stability in the energy market.
- Answer
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Ofgem are acting to reduce the risk of energy suppliers failing, including quarterly stress testing to identify unsuitable business models and through new (proposed) capital adequacy requirements. These capital adequacy proposals would require domestic suppliers to hold a capital buffer to ensure that they are able to bear risks, improving the financial stability of the retail energy market.
Ofgem are also acting to reduce the costs which are mutualised when suppliers do fail, for example, requiring domestic suppliers to ringfence an environmental levy called the Renewables Obligation.
Secondary information
- Type
- Written question
- Reference
- HL9084
- Session
- 2022-23
- Subjects
- Consumers Finance Energy supply Protection
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2023-07-18 12:40:41 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/lords/2022-23/HL9084
- In Indexing
- http://indexing.parliament.uk/Content/Edit/1?uri=http://data.parliament.uk/writtenparliamentaryquestion/lords/2022-23/HL9084
- In Solr
- https://search.parliament.uk/claw/solr/?id=http://data.parliament.uk/writtenparliamentaryquestion/lords/2022-23/HL9084