Beautiful Virgin Islands

Monday, Oct 20, 2025

Energy crisis: Around £200m in credit balances 'missing' after supplier failures, Ofgem tells MPs

Energy crisis: Around £200m in credit balances 'missing' after supplier failures, Ofgem tells MPs

Ofgem's chief executive Jonathan Brearley tells the business, energy and industrial strategy (BEIS) committee that the bill for lost credit balances could quadruple from its current level as he faces questions over why the money was not ringfenced.

The energy regulator has told MPs that it estimated around £200m in household credit balances was lost through the failures of energy companies over the past year - with up to £10 set to be added to rocketing bills as a result.

Ofgem chief executive Jonathan Brearley made his remarks as the business, energy and industrial strategy (BEIS) committee seeks lessons in the wake of the energy price-driven spike in inflation that is set to pile misery on consumers.

The watchdog's stewardship of the energy market has been called into question after surging wholesale costs forced almost 30 firms out of business since last summer.

The millions of customers affected were appointed a new supplier by Ofgem but it emerged that household credit balances did not transfer with them as the cash - a consequence of a direct debit level versus energy use imbalance - had often already been accounted for by the companies that went bust.

It was confirmed last week that the energy price cap - which Ofgem said had protected 22 million households from the worst over the winter - is set to rise in April by an average £693 per year per household.

Of that sum, £2.45 accounts for £54m in lost consumer credit balances to date, covering about a quarter of the overall estimated loss.

Mr Brearley said: "Those figures aren't figures that we're finished with but are roughly in that order of magnitude."

He explained Ofgem was in the process of implementing a demand that suppliers return credit balances to customers on an annual basis but the measure was not finalised ahead of the price crisis.

He added: "The argument at the time was that this would make it very hard for small suppliers to operate."

Mr Brearley told the MPs that boosting competition in energy provision had been the "number one priority" for regulators, not just Ofgem, over the past decade.

But he admitted it had come at the expense of tougher financial controls on smaller operators - and it was an issue the regulator was working to address in its proposed market reforms.

Ofgem also announced last week that in addition to the cap reflecting the higher energy costs, there would be a £68 charge to cover the cost of protecting the customers whose energy suppliers had failed because their new suppliers had needed to buy energy at the top of the market to meet their needs.

Mr Brearley sounded a note of caution on the path for energy prices ahead, given the effects already being seen in the market because of the Russia-Ukraine crisis.

"If Russia invades Ukraine that would drive high gas prices and ultimately feed through to customers," he warned.

He explained that while Britain only receives around 5% of its gas supply from Russia, lower overall Russian supply to Europe would mean less supply becoming available from other sources and potentially higher prices as a result.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
×