Gordon MP Richard Thomson has welcomed the announcement from Ofgem that energy suppliers will undergo financial stress testing from January to measure their resilience.
Ofgem has also announced a review of the energy price cap amid fears that the current arrangements could lead to higher costs for consumers.
Commenting, Richard Thomson MP said:
“We have seen a massive amount of volatility in the wholesale energy markets of late, leading to huge price increases in their energy bills for consumers.
“The price cap is intended to make sure that householders pay a fair price for their energy and since its introduction it is estimated to have created around a £1billion benefit each year. The regulator’s view is that while consumers are protected from price spikes, suppliers are exposed to risks that are hard to manage during periods of high volatility – as we’ve seen recently with the number of energy suppliers going under. The concern is that this might actually lead to higher costs for consumers so I welcome any steps to provide some stability in the market and to ensure consumers aren’t further hit with energy price hikes.”