In response to the failures seen during the energy crisis, we introduced new rules so suppliers are more financially secure and prepared for future volatility. This means they can better protect their customers.
Across the sector suppliers have moved from net negative assets during the crisis to positive adjusted net assets of £7.5 billion. This reduces the chance of suppliers going out of business in the future and lowers the cost to consumers when suppliers exit the energy market.
When a supplier fails, their customers are moved to a different supplier, and their credit balances are protected. The cost of these protections is shared by all billpayers. This has fallen from a peak of £64 per year in 2022 to 2023 to £0 in 2025 to 2026.
Our new rules make sure that suppliers put their own capital at risk and that they are not overly relying on their customers’ money to fund their business.