Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, on what date Ofgem first consulted on protecting credit balances as part of its supplier licencing review; and what estimate he has made of the value of credit balances subsequently mutualised as a result of supplier failures since that date.
Ofgem first consulted on protecting customer credit balances in October 2019 (https://www.ofgem.gov.uk/publications/supplier-licensing-review-ongoing-requirements-and-exit-arrangements).
The Department has not estimated the value of customer credit balances that have been mutualised. Ofgem approves claims for the recovery of the costs under the Supplier of Last Resort levy.
On 14 April 2022 Ofgem published an open letter outlining proposals to further tighten protections against the financial instability of suppliers, including preventing the use of customer credit balances as working capital.