Ofgem blamed as supplier failures lead to higher energy bills

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Ofgem blamed as supplier failures lead to higher energy bills
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Billpayers are hit with £94 extra a year after 28 companies collapsed due to energy price hikes.

Energy watchdog Ofgem has been accused of allowing an industry to develop on "shaky foundations" in which a series of supply companies collapsed.

"Once again, it's the public who has to pay for the mistakes of those charged with protecting them. It's unacceptable."The result of last year's shock was that 2.4 million customers were automatically moved to a rival company when their own supplier collapsed. Typically, according to Citizens Advice, they had to pay an extra £30 a month for the duration of their original contract, as they were shifted to a more expensive tariff.

As a result, many suppliers lacked the financial resilience to deal with the six-fold increase in wholesale prices seen last year, the NAO said.

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