Energy supplier Ovo admits non-compliance with Ofgem capital regime

Ovo has go the latest large vigor supplier to disclose its nonaccomplishment to conscionable caller superior adequacy rules imposed by the manufacture watchdog.

Sky News has learnt that Ovo Energy is the 2nd of the UK's biggest state and energy companies to beryllium successful method default of an Ofgem-imposed authorities which came into effect successful March.

Octopus Energy, which has overtaken British Gas to go Britain's largest household vigor supplier, publically revealed its ain non-compliance with the rules earlier this year.

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On Friday, Greg Jackson, Octopus Energy's laminitis and main executive, described the model arsenic "crude" successful an interrogation with the Financial Times.

According to measures introduced by Ofgem, vigor suppliers indispensable clasp a definite level of currency oregon different tangible assets connected their equilibrium sheets, with the threshold acceptable according to the fig of customers they have.

A caller alteration to the rules, which removed intangible assets from the calculation, meant that a fig of companies, including Octopus Energy and Ovo, were not technically compliant.

The superior adequacy threshold is understood to enactment retired astatine astir £115 per dual-fuel customer.

A spokesperson for Ovo said: "We person taken proactive measures to align with Ofgem's caller superior rules, moving constructively to conscionable the requirements."

Ovo was catapulted into the manufacture large league erstwhile it bought SSE's residential proviso arm.

It present has 4 cardinal customers.

The company, similar Octopus Energy, has a proviso statement with Shell which it argues importantly strengthens its fiscal resilience.