The spectre of another energy market collapse is haunting the UK, as a new Ofgem report reveals that five energy suppliers are failing to meet critical financial resilience targets.

Just years after the catastrophic failure of Bulb and dozens of other firms cost taxpayers billions, the regulator finds itself accused of sleeping at the wheel again. The "Powering Trust" report admits that nearly 20% of the market is operating with insufficient capital buffers. This revelation has sparked a vicious public row between the industry's titans, with Centrica (owner of British Gas) accusing the regulator of "criminal" negligence for allowing under-capitalized rivals like Octopus Energy to expand unchecked.

The Battle of the CEOS

Centrica boss Chris O'Shea has pulled the pin on a grenade, demanding that firms missing their capital targets be banned from taking on new customers. His argument is simple: growth without capital is a Ponzi scheme that the public eventually pays for. "We cannot risk a repeat of the energy crisis," he warned.

Octopus Energy, the disruptor that has grown to become the UK's largest supplier, hit back with venom, dismissing Centrica's concerns as "naked self-interest" from a legacy incumbent terrified of competition. Octopus insists its capital position is robust and that it has an agreed plan with Ofgem.

• The Regulator's Dilemma: Ofgem is caught in a trap. If it enforces the rules too strictly, it stifles competition and innovation. If it is too lax, it risks another bailout bill. Currently, it is opting for "proactive engagement" rather than punishment.
• The Hidden Risk: With wholesale gas prices remaining volatile due to geopolitical instability, the lack of capital buffers leaves these suppliers dangerously exposed to a sudden market shock.

A Fragile Resilience

The report claims the sector has swung from negative assets to a positive £7.5 billion position, but averages hide the rot at the edges. The refusal of Ofgem to name the struggling suppliers (beyond those who self-identified) adds a layer of opacity that frustrates consumer advocates.

Ultimately, the row is about the rules of the game. Is the UK energy market a wild west where growth is king, or a utility where stability is paramount? Ofgem's current "fudge" satisfies no one, and if another supplier goes bust this winter, the "flexible" approach will look less like pragmatism and more like complicity.