In response to the large number of supplier failures in 2018, Ofgem is introducing new measures aimed at ensuring the r0bustness of new energy suppliers entering the market.
From June 2019, new suppliers applying for a licence will need to undergo more stringent tests. Ofgem’s executive director of consumers and markets, Mary Starks, says the tests will “help minimise the risk of supplier failure and help drive up standards for consumers.”
The tests will measure applicants’ ability to adequately fund their operations for the first year. They will also be required to demonstrate how they expect to comply with key regulatory and market obligations, and deliver a proper level of customer service.