The head of British Gas parent company Centrica has demanded that competitor Octopus Energy face a customer acquisition ban, alleging the firm has breached financial stability requirements.
Chris O'Shea, Centrica's chief executive, accused the nation's energy regulator of neglecting to enforce regulations designed to ensure supplier financial strength.
The dispute centres on capital adequacy standards introduced this year, which O'Shea claims three suppliers have not satisfied.
Octopus Energy, which currently serves over seven million UK homes, acknowledged missing the April deadline for these benchmarks but maintains it operates within regulatory guidelines through an approved remediation programme.
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|British Gas owner Centrica's boss is urging Ofgem to clamp down Octopus Energy
O'Shea launched a scathing attack on the regulator while announcing Centrica's half-year financial results.
"Ofgem is not applying its own rules," he stated, warning that the watchdog was "increasing the risk of systemic failure in the market".
The Centrica boss described the regulatory oversight as "criminal," expressing alarm that Ofgem was creating conditions that might trigger another industry collapse.
He drew parallels with the 2021-22 energy crisis that saw numerous suppliers fail, cautioning that inadequate enforcement could lead to similar turmoil.
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GETTY | Energy bills are expected to rise this winter "It's simply about protecting customers and asking the regulator to enforce its own rules," O'Shea insisted.
Octopus Energy dismissed the allegations as commercially motivated, with a spokesperson declaring: "This is yet more naked self-interest from British Gas."
The company suggested its competitor should focus on customer service rather than attacking rivals.
"We fully comply with Ofgem's rules and our resilience meant we not only thrived through the energy crisis but bailed out Bulb saving British billpayers billions," the spokesperson added.
The regulator supported this position, confirming that suppliers operating under approved improvement plans were not violating regulations.
An Ofgem spokesperson clarified: "Our financial resilience controls are clear that where a supplier is not meeting the capital target but has a credible and agreed plan in place that is not a breach of the rules."
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PA | British Gas boss Chris O'Shea has hit back at Octopus Energy
The financial resilience regulations were implemented earlier this year to prevent a repeat of the market chaos that saw dozens of suppliers collapse during the 2021-22 energy crisis.
These rules require energy companies to maintain specific capital reserves to weather market volatility and protect consumers from sudden supplier failures.
The regulator stated that improvement plans include "restrictions and controls" and confirmed it was "monitoring closely" to ensure compliance.