Watchdog fears a global rationing of energy consumption this winter! | City & Business | Finance

Managing director Jonathan Brearley insisted measures were in place to cope, but admitted he could not guarantee supplies would not be affected.

He said: “Ofgem, together with the industry, will do everything in our power to protect customers.”

“That means putting in place tough rules on how customers are treated, making sure the price cap is set fairly, but also making sure these businesses are more resilient.”

Mr Brearley did not detail how rationing might work, but it has previously been suggested that energy-intensive businesses could be the first to be hit, with limits on energy consumption.

He said that in the unlikely event that the domestic power supply was affected, it could be limited to short power cuts in the early morning.

Mr Brearley said the changes in wholesale prices are “dramatic” and the war in Ukraine is mounting pressures and still expects the price cap to hit around £2,800 in the autumn.

Right now, if a company goes bankrupt, customers end up covering the costs. Under these plans, consumers’ money will be better protected against future failures by energy suppliers.

Businesses will be required to have enough working capital in the bank to keep them running.

Ofgem wants to end customer credit balances “used by some suppliers as an interest-free corporate credit card”.

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