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Financial “health checks” needed for new entrants, says BEIS committee chair

Financial “health checks” needed for new entrants, says BEIS committee chair


The viability of new energy suppliers should be more closely scrutinised, the chair of the business, energy and industrial strategy (BEIS) select committee has suggested. Speaking during oral questions for BEIS ministers on Tuesday 13 December, Iain Wright argued that Ofgem might need to reconsider its approach to risk management in light of the failure of GB Energy Supply, which left the regulator needing to appoint a Supplier of Last Resort. He said: “Instead of carrying out little or no assessment of the viability of new entrants and then picking up the pieces if they fall, more rigorous financial health checks need to be undertaken to minimise the risk of failure, disruption to customers and a loss of confidence in switching to new energy providers.”

Parliament