UK’s Ofgem Will Require Energy Suppliers to Hold Minimum Capital

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UK regulator Ofgem proposed new rules requiring energy suppliers to hold a minimum amount of capital to ensure they can withstand volatility in power and gas markets.

Ofgem would require suppliers to ring-fence money needed to buy renewable energy and strengthen the action it can take if companies misuse customer credit balances, according to a statementBloomberg Terminal. But it wouldn’t require them to ring-fence those balances, a measure called for by firms including Centrica Plc.