EDF and Ovo have had their say in a spat between Utilita and energy regulator Ofgem over the latter’s decision to implement tougher financial resilience rules on the sector.
After gaining UK Competition and Markets Authority approval to get involved in the case, EDF and Ovo were split on the sides they chose in the dispute.
EDF backed Ofgem and will help the regulator dispute Utilita’s appeal to the rule change - which will require suppliers to ringfence funds to prevent collapse.
Ovo took the side of Utilita, which has argued previously that the move could put smaller suppliers at risk given they face more difficulty in raising funds.
Set to be introduced in March 2025, the new financial resilience measures mean suppliers would have to keep £115 aside per customer to protect against future price shocks.
The rules are ultimately designed to prevent suppliers from collapsing after 30 failed between 2021 and 2022.
Utilita, which is the smallest of the firms now involved, said the tougher rules would “put fundamentally resilient suppliers […] in an unsustainable position for minimal regulatory benefit,” in a previous CMA filing.
Ofgem argued the requirements to keep extra cash would shield suppliers from any sudden changes in energy prices, like those seen following the outbreak of war in Ukraine last year.
EDF and Ovo were allowed by the CMA to provide evidence based on the material interests and the effects the decision could ultimately have on each.