Small suppliers have welcomed a move by SSE to boost liquidity, but argue it will mainly benefit new entrants and market intervention is needed to fully address the issues.
SSE wrote to small suppliers last week outlining plans to give them access to the type of product they need, provide some credit and take on a degree of risk.
Ramsay Dunning, group general manager at Co-op Energy, welcomed the proposals, but said independent suppliers should not have to rely on “one or two of the big six who could later change their offers”.
He said Ofgem should place a mandatory auction obligation on all big suppliers and generators, and set out a timetable for a monthly auction. If products were made available transparently using existing platforms, the next scheduled mandatory auction could be cancelled.
First:Utility CFO Darren Braham wanted more detail on prices, collateral requirements and the risks that remain with independents.