Energy bills: Watchdog plans to prevent company closures

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Watchdog plans to prevent energy company closures

Around 1.5 million UK households were affected when companies including Avro, People's Energy, Utility Point and MoneyPlus Energy ceased trading in September 2021.

The proposed changes include making energy companies' supply chains more resilient, including better oversight over their "key assets". Included in the plans, which still needs to be finalised via consultation, is the tightening of the rules on the level of direct debits suppliers can charge customers, as "consumer credit balances... are used by some suppliers like an interest free company credit card."At the time, Mr Brearley said the price rises were aMillions of domestic gas and electricity customers cover their bills with an identical direct debit payment every month.

 

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