Ofgem is contemplating the reintroduction of a market stabilisation charge (MSC) to help energy suppliers avoid bankruptcy during the upcoming winter. This charge would require suppliers who attract customers with lower prices to compensate rivals if wholesale prices drop significantly, aiming to stabilize the market amid ongoing volatility linked to geopolitical tensions.
The MSC was previously in effect from April 2022 to March 2024, during which many energy companies failed due to soaring prices. As households face rising energy costs, Ofgem's consultation seeks input on the MSC's operational details to ensure a resilient energy market.