economy United Kingdom
Ofgem consults on reintroducing energy market stabilisation charge
10%
The market stabilisation charge would be triggered if wholesale prices fell by more than 10%.
Ofgem has published a consultation on reintroducing the market stabilisation charge, which would require some suppliers gaining customers through cheaper deals to compensate rivals. The proposal is intended to reduce the risk of supplier failures during volatile wholesale energy markets.
1 sourceThe GuardianUpdated
Claims
Support what holds up. Dispute what doesn't.
Ofgem has published a consultation on a proposal to reintroduce the market stabilisation charge.
“Ofgem has published a consultation on a proposal to reintroduce the market stabilisation charge (MSC)”
- 10%
The market stabilisation charge would be triggered if wholesale prices fell by more than 10%.
“the MSC would be triggered if wholesale prices fall more than 10%”
- 85%
Suppliers gaining customers through cheaper deals would compensate rivals for 85% of the fall in wholesale rates.
“would have to compensate rivals 85% of the drop in wholesale rates”