Centrica calls for new customer ban on rival Octopus amid row over Ofgem rules
He demanded that the regulator stops the suppliers from taking on new customers, claiming that Ofgem is not properly enforcing the rule that came into force earlier this year.
This could leave the sector at risk of another possible future wave of firms going bust, similar to that seen in the 2021-22 energy crisis, he warned.
Centrica chief executive Chris O'Shea (Andrew Milligan/PA)
On announcing half-year results, Mr O'Shea said: 'Ofgem is not applying its own rules.
'They're increasing the risk of systemic failure in the market.'
He said it was 'criminal' that Ofgem is putting the industry in a 'situation where that could happen again'.
'It's simply about protecting customers and asking the regulator to enforce its own rules,' he added.
Ofgem has not revealed which suppliers have failed the test, but Octopus – which supplies more than seven million households – has confirmed it did not meet the targets for capital adequacy by the April 1 deadline.
It said it has, however, agreed a plan with Ofgem to reach the target, which means it is not in breach of the rules.
An Octopus Energy spokesperson said: 'This is yet more naked self-interest from British Gas.
'They would do well to obsess about their customers rather than their rivals.
They added: 'We fully comply with Ofgem's rules and our resilience meant we not only thrived through the energy crisis but bailed out Bulb – saving British billpayers billions.'
Ofgem also confirmed that firms that have agreed a plan to meet resilience targets are not breaching its rules and therefore do not need to have sanctions put on them, such as being banned from taking on new customers.
A spokesperson for Ofgem said: 'Our financial resilience controls are clear that where a supplier is not meeting the capital target but has a credible and agreed plan in place that is not a breach of the rules.
'Capitalisation plans come with restrictions and controls. We expect suppliers to deliver on those plans and adhere to their restrictions and are monitoring closely.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
29 minutes ago
- Reuters
Britain has not hit peak Greggs, CEO says
LONDON, July 29 (Reuters) - British baker and fast food chain Greggs (GRG.L), opens new tab is keeping its foot on the pedal in an expansion drive, despite a slowdown in sales growth that dragged down first-half profit by 14%, its boss said on Tuesday. Greggs, known for sausage rolls, steak bakes, vegan alternatives and sweet treats, has more stores than McDonald's (MCD.N), opens new tab in Britain and opened a net 31 new stores over its first half to June 28, taking the total to 2,649. It said it was on track to open 140 to 150 new shops in 2025, saw an opportunity for "significantly more" than 3,000 shops over the longer term and ultimately saw scope for more than 4,500. However, like-for-like sales growth slowed to 2.6% in the first half versus 5.5% in 2024, which Greggs partly blamed on June's heatwave, prompting some investors to reportedly call for expansion to be slowed. "I completely do not believe we've reached peak Greggs," CEO Roisin Currie told Reuters in an interview. "There are still significant parts of the UK where you cannot access a Greggs," she said, adding that it was underrepresented in retail parks, supermarkets, roadside and transport locations. Shares in Greggs were down 4.5%, extending 2025 losses to 44%. Despite the slump, Currie, CEO since 2022, said she did not believe her job was under threat. "I'm not responsible for the share price," she said. "My job is to make sure that we continue to take every opportunity and make strategic progress." Greggs made a pretax profit of 63.5 million pounds ($84.8 million) in the six months to June 28, on total sales up 7.0% at 1.03 billion pounds, boosted by new store openings. This month, Greggs warned full year profit "could be modestly below" 2024 levels after underlying sales growth slowed in a June heatwave that boosted demand for cold drinks but reduced overall shopper numbers. Greggs' growth is also being supported by the expansion of its menu, longer opening hours into the evening, increased delivery sales through Just Eat and Uber Eats and loyalty building through the Greggs App. ($1=0.7492 pounds)
Reuters
an hour ago
- Reuters
StanChart announces new chief risk officer
LONDON, July 29 (Reuters) - Standard Chartered (STAN.L), opens new tab has appointed Jason Forrester as its new Chief Risk Officer, the British bank said on Tuesday. Forrester joined the lender five years ago and is currently Co-Head, Chief Risk Officer, Corporate & Investment Banking, it said. Forrester previously worked at Credit Suisse for 21 years, and replaces Sadia Ricke, who is leaving the bank, StanChart said. The Asia, Africa and Middle East-focused bank reports its first half financial results on Thursday, with investors focused on whether it can sustain recent momentum in growing revenues while managing risks associated with market turmoil from U.S. President Donald Trump's trade tariffs.
Daily Mirror
2 hours ago
- Daily Mirror
England Lionesses pair told they could earn as much as Emma Raducanu as stars bank £87k
After England Lionesses won the European Championship for the second time in a row, two players in the squad are expected to have many brands lining up to endorse them, similarly to Emma Raducanu England Lionesses' stars Hannah Hampton and Chloe Kelly have been told they could rake in as much cash from endorsements as British tennis ace Emma Raducanu. Hampton and Kelly were the two standout heroes in the European Championship final triumph against Spain for Sarina Wiegman's side, particularly in the penalty shootout. Hampton, 24, saved spot-kicks from Mariona Caldentey and Aitana Bonmati, while Kelly, 27, set up Alessia Russo's equaliser in the 90 minutes, before smashing home the decisive penalty to secure another trophy for the Lionesses. Kelly, who plays for Arsenal, already has a reported net worth of around £2.3million, courtesy of lucrative endorsement deals with big names like Calvin Klein, Nike and many more. The latter deal was inked after she celebrated her winning goal against Germany in 2022 by revealing a Nike sports bra. Meanwhile, Hampton, who stepped in to became England's No. 1 after Mary Earps retired from representing the Lionesses, is also expected to ride a similar wave of endorsement opportunities. All members of the victorious Lionesses squad will pocket £87,000 each as their share of the UEFA prize money. However, it's suggested that Hampton and Kelly could see their wealth skyrocket through endorsements, mirroring the financial success of Raducanu after her US Open triumph as a teenager in 2021. The tennis sensation banked £10.5m in 2024 - predominantly through brand partnerships and sponsorship agreements - and is understood to have a net worth of around £10m. Speaking to The i Paper, media analyst Alex DeGroote reckons Kelly and Hampton could have similar financial success. Salaries in the FA Women's Super League (FAWSL) remain considerably lower than Premier League wages, with Chelsea striker Sam Kerr topping the table in the women's game with her £417,000 annual earnings. In the division, players earning less than £100,000 a year is not unusual. Though DeGroote doesn't expect FAWSL wages to climb dramatically anytime soon, he anticipates a surge in commercial opportunities. After describing Raducanu's £10.5m endorsement haul as a "benchmark" for Hampton and Kelly alike, the media expert said: "Kelly will not find it easy to improve her sports salary. "But endorsements are a different story. I would imagine her agents will want to nail down her brand attributes and then find it easy to sell her to brand advertisers in areas like fashion, cosmetics and financial services." Beyond their tournament performances, both players' personal journeys are expected to strike a chord with fans. Hampton, who represents Chelsea women, underwent operations to fix severe childhood eye conditions and was repeatedly warned she'd never reach football's elite level. She's also reportedly lined up for an interview with fashion publication Elle, where she will likely open up about her journey. Professor Ellis Cashmore, author of Celebrity Culture, also reckons the relatability and down-to-earth nature of Kelly, Hampton and the rest of their colleagues, will make them a massive hit with fans. Cashmore said: "Fans want relatable celebrity athletes. Chloe, Hannah and co. could easily be standing next to you at the Lidl checkout and you feel you could just strike up a conversation and they'd be totally natural. "This makes them perfect for advertisers and large-scale corporations. This tournament has been an inflection moment for women's football. "The amount sponsors have invested in the sport and the individual players confirms that the sport has sped off on a new trajectory. McDonalds, Amazon, Samsung, all geared to the Gen Z market, were big advertisers during ITV games."
