Ofgem to appear in court today

Administrators are reportedly challenging the regulator’s status as a creditor in the collapse of three suppliers

Big Zero Report 2022

Ofgem will reportedly appear in court today as a group of administrators is challenging its ability to claim hundreds of millions of pounds from energy suppliers that went bust.

According to Sky News, three insolvency firms, Alvarez & Marsal, Teneo Restructuring and Grant Thornton are seeking a legal intervention over the regulator’s right to claim outstanding Renewables Obligation Certificate payment from administrators.

The report claims that Ofgem is a participant in the hearing and the verdict might mean that billpayers could face even higher costs.

Yesterday, the energy regulator announced a series of measures to protect customers and suppliers against rising prices.

One of these measures urges energy companies to offer the same deals to existing and new customers.

More than 20 suppliers have gone bust since September 2021 leaving over two million customers behind.

Alvarez & Marsal was appointed administrator for a number of bust suppliers, including Avro Energy which ceased to trade in September with its 580,000 customers being transferred to Octopus Energy.

Teneo runs the special administration of Bulb, which was Britain’s seventh-biggest supplier with around 1.5 million customers. 

An Ofgem spokesperson declined to comment on the basis that the regulator does not comment on ongoing legal proceedings.

Grant Thornton, Alvarez & Marsal and Teneo also declined to comment.

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