Ofgem: update on stabilising the energy market

Press release

Publication date

Industry sector

Supply and Retail Market

Today (Wednesday 16 February 2022), Ofgem is introducing two time-limited measures to help stabilise the energy market.

This follows consultation at the end of 2021: Statutory Consultation on short-term interventions 

An Ofgem spokesperson said: “The energy market has faced a huge challenge due to the unprecedented increase in global gas prices; a once in a 30-year event. We’re putting in place short-term measures to protect consumers.  

“All suppliers will have to offer existing customers the same deals available to new customers. This will ensure customers can benefit from all tariffs available in the market and enable more consumers to benefit when wholesale prices fall. We’ll monitor how effective this is before considering whether it should become an enduring measure in the market.   

Suppliers will also be required to pay a Market Stabilisation Charge to the losing supplier when acquiring a new customer, which will only be triggered if wholesale prices fall considerably below the level assumed in the price cap. Alongside tougher financial regulation, this will make sure that energy companies do not take disproportionate financial risks and suppliers who have done the right thing by purchasing energy in advance for their customers aren’t penalised, whilst protecting the ability of switching consumers to benefit from cheaper tariffs when prices fall.” 

Notes to editors:

You can read stakeholder responses to the consultation here: Statutory Consultation on short-term interventions 

For media queries, contact press@ofgem.gov.uk or call 0792 882 9894

General enquiries (non-media)

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About Ofgem

Ofgem is Britain’s independent energy regulator. Our role is to protect consumers now and in the future by working to deliver a greener, fairer energy system. We do this by: 

  • Working with Government, industry and consumer groups to deliver a net zero economy at the lowest cost to consumers. 
  • Stamping out sharp and bad practice, ensuring fair treatment for all consumers, especially the vulnerable. 
  • Enabling competition and innovation, which drives down prices and results in new products and services for consumers. 

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