Ofgem challenged by administrators over suppliers’ billions
Ofgem is under pressure from a trio of administrators, which are challenging its status as a creditor in the collapse of three separate gas and electricity companies.
According to Sky News, the insolvency practitioners – Alvarez & Marsal, Grant Thornton and Teneo Restructuring – are seeking a legal intervention.
They want the courts to determine Ofgem’s rights to claim outstanding Renewables Obligation Certificate payments from administrators.
Sources have told the news service that a directions hearing could take place in London as soon as tomorrow, with the verdict set to establish whether Ofgem can claim hundreds of millions of pounds from the remnants of collapsed suppliers.
The outcome, if it goes against the market regulator, could mean bill-payers face yet higher costs at a time of already-soaring prices.
Earlier today, Ofgem revealed time-limited reforms to the energy market, including a levy for suppliers acquiring new customers.