Outfox The Market has been fined £1.8 million for its failure to submit essential financial data and “other necessary information” to Ofgem.
To ensure the stability of the energy market and prepare for potential price fluctuations, the energy regulator mandates that suppliers provide comprehensive financial information, demonstrating their capacity to withstand future shocks in pricing.
This measure is crucial to prevent a recurrence of the energy crisis that occurred in 2021, during which 30 suppliers went bankrupt.
During this evaluation, suppliers are required to provide forecasts for three different price scenarios: lower, central and high wholesale prices.
This tool enables Ofgem to assess a supplier’s resilience in handling sudden market changes effectively.
In addition to the stress test, Outfox The Market was asked to provide crucial information for Ofgem’s recent series of ‘deep dive’ Market Compliance Reviews.
These reviews aim to ensure that energy suppliers comply with the necessary regulations and maintain a competitive and sustainable market for consumers.
However, Outfox The Market “repeatedly” fell short in providing an appropriate level of detail within the required timeframe.
Cathryn Scott, the Director of Enforcement and Emerging Issues for Ofgem, stressed the importance of suppliers’ financial resilience in creating a sustainable and competitive market for consumers.
