This report contains the findings of an independent review commissioned by Ofgem's Board into the root causes of the recent supplier failures and specifically, into how regulation of the industry played a part.

Over the course of 2021, global gas prices rose to unprecedented levels. Over autumn and winter 2021/22, this has pushed around 30 suppliers (as of 31 March 2022) to insolvency, with a combined market share at the point of failure of more than 10% (around 4 million customers). Customers have been transferred to new suppliers or, in the case of Bulb, to a court-appointed Special Administrator. The costs associated with the customer transfers that have resulted from these failures are significant, and are or will be borne by consumers.

As regulator of the energy supply market in Great Britain (GB), Ofgem commissioned Oxera Consulting to carry out an independent ‘lessons learnt’ review of its role in the recent supplier failures in the UK retail energy market. This report assesses Ofgem’s role in recent supplier failures through:

• the system of licensing and other requirements that it places on energy suppliers. These, collectively, shape the structure of the market;

• its ongoing monitoring of the market, which helps it to determine an appropriate regulatory policy direction.