Ovo has become the last major energy supplier to disclose his inability to respect the new rules for the adequacy of capital imposed by the Industry Watch Dog.
Sky News learned that Ovo Energy is the second of the largest gas and electricity companies in the United Kingdom to be in a technical defect of a regime imposed by OFGEM which entered into force in March.
Octopus Energy, which has surpassed British gas to become the largest energy supplier of British households, publicly revealed its own non-compliance of rules earlier this year.
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Friday, Greg Jackson, founder and chief executive officer of Octopus Energy, described the executive as “crude” in an interview with the Financial Times.
According to the measures introduced by OFGEM, energy suppliers must have a certain level of money or other tangible assets on their balance sheets, with the threshold fixed according to the number of customers they have.
A recent change in the rules, which removed the intangible assets from the calculation, meant that a certain number of companies, in particular Octopus Energy and Ovo, were not technically in conformity.
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The capital adequacy threshold is included as operating at around £ 115 per double fuel client.
A spokesperson for OVO said: “We have taken proactive measures to align with the new capital rules of Ofgem, working in a constructive manner to meet the requirements.”
Ovo was catapulted into the great industry league when she bought the SSE residential supply arm.
It now has four million customers.
The company, like Octopus Energy, has a supply agreement with Shell, which, according to it, considerably strengthens its financial resilience.