Over the past decade there has been an influx of small- and medium-sized entrants to the U.K. gas supplier market, which is supervised by Great Britain’s independent energy regulator, the Office of Gas and Electricity Markets (Ofgem). According to Ofgem, this market development had the effect of increasing price competition and putting pressure on incumbent suppliers to improve customer service for consumers.
Price volatility and increased prices, linked to the consequences of Russia's invasion of Ukraine and the ongoing war there, have put many gas companies under strain, as well as impacting consumer prices.
This note updates our 4 October 2021 publication on these issues. It highlights U.K. gas regulatory and financial markets issues arising out of the current crisis that create challenges for participants. We expect this note to be of interest to trading companies in the gas supply chain, participants in the gas financial markets and their clearing firms, insolvency officials and practitioners, and even consumers.