UK households could face £2.4bn bill for energy firm collapses

Regulator warns that consumers could end up funding payments to suppliers that took on customers of failed rivals

Households could end up funding 2.4bn of payments to energy suppliers that took on the customers of rivals that collapsed as a result of sky-high gas prices, the energy watchdog has told MPs, as it warned a second wave of failures could be on the horizon.

In evidence to the business, energy and industrial strategy (BEIS) select committee, Ofgem detailed the costs associated with the supplier of last resort" system, under which customers of an energy supplier that collapses are transferred to a healthier utility company.