Consumer Impact of Recent Energy Supplier Failures

This report examines the consumer impact of recent energy supplier failures, particularly focusing on the events since January 2018, when ten domestic suppliers failed, affecting approximately one million consumers. The document outlines the reasons behind these failures, including rising wholesale prices and poor service quality. It details the Supplier of Last Resort (SoLR) process implemented by Ofgem to ensure continued energy supply for affected customers. The report also discusses the financial implications for consumers, highlighting that costs associated with supplier failures could reach £172 million, which are ultimately shared among all consumers. Furthermore, it addresses the protection gaps for customers in debt and the challenges they face during the transition to new suppliers. The report concludes with policy recommendations aimed at improving consumer protections and reducing the financial burden of supplier failures on consumers.