New energy companies are subject to more rigorous testing to reduce failures

Small energy suppliers who want to break into the market will have to pbad stricter tests, following a series of corporate collapses.

The Ofgem regulator stated that it was raising the bar at the entrance to "minimize the impact" of supplier failure on consumers.

Companies will have to prove that they have sufficient funding and that they can provide adequate customer service.

In the last six months, 11 small energy companies have failed, including Brilliant Energy, Our Power and Gen4U.

The new tests will be deployed from June.

Mary Starks, General Manager of Consumer and Markets at Ofgem, said the goal was to "protect consumers while ensuring they enjoy the benefits of increased competition and innovation brought by the news. successful companies on the market ".

"Applying new requirements to incoming and existing suppliers will help us eliminate those who are under-prepared, under-resourced and inefficient, which will help reduce the risk of supplier failure and advance standards applicable to consumers.