Ofgem, the UK’s energy regulator, has sent a letter to all retail energy suppliers outlining expectations on dividend distributions.

The letter emphasises the importance of responsible distributions that do not create vulnerabilities or hinder the fair treatment of customers.

Ofgem aims to promote financial resilience in the sector while ensuring market stability.

Suppliers are urged to consider their financial responsibility obligations when deciding on dividend distributions.

The letter provides guidance within a regulatory framework and highlights the need for transparent and responsible decision-making.