New energy companies will face tougher tests before they can supply homes with gas and power after a wave of costly company collapses. The regulator plans to “weed out” problematic suppliers before they can lumber the market with poor service, higher costs and the need for a bail-out once they go bust. Would-be suppliers will need to prove that they have the financial mettle to “adequately” fund their operations for the first year, after more than 10 companies collapsed last year. The higher barrier will include a quadrupling of the market entry fees from £450 to £2,150 after the regulator reviewed the rate for the first time in almost a decade. Ofgem will also make sure companies can provide a “proper” level of customer service and that their leadership team is “fit and proper” to hold a licence to supply energy.
Telegraph 11th April 2019 read more »
Guardian 11th April 2019 read more »
FT 11th April 2019 read more »