Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what contingency plans he has in place for major domestic energy suppliers being unable to meet regulatory obligations.

Ofgem, as the independent regulator, actively monitors the market using both direct and proxy information to identify any risks of supplier failure.

Any reporting relating to Ofgem’s enhanced monitoring is a matter for Ofgem to communicate, given the commercial sensitivity of supplier finances.

In April 2025, Ofgem implemented the final stage of their capital adequacy regime, which includes measures such as requiring suppliers to hold sufficient capital, as well as having control over material assets needed to run their business and enhanced monitoring and reporting commitments. These measures have strengthened the financial resilience of suppliers and the stability of the retail market.

In the event of the failure of a major energy supplier, the Government and Ofgem have robust and well-tested procedures in place to ensure that customers do not experience any disruption to their energy supply. These include the Supplier of Last Resort process, successfully utilised twice in 2025, and the Special Administration Regime (SAR) for a larger supplier failure. In both cases, customers would continue to be supplied by as normal at the lowest reasonably practicable cost.