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Centrica CEO Warns of Reluctance to Bail Out Failed Energy Providers
16 Nov
Summary
- Centrica CEO Chris O'Shea may not rescue more failed energy providers
- Ofgem accused of not being transparent about firms' financial shortfalls
- Ovo Energy facing concerns over ability to continue as a going concern
As of November 16, 2025, Centrica CEO Chris O'Shea has issued a warning that he may be reluctant to bail out failed energy providers in the future. O'Shea's comments come amid intense speculation that a major energy supplier is on the verge of collapse.
O'Shea, whose company British Gas is the parent of Centrica, recently stepped in to rescue customers of the collapsed supplier Tomato Energy. However, he stated that he may not be willing to do the same for more firms if they are unable to raise enough capital to meet the financial resilience targets set by industry regulator Ofgem.
"If they can't raise the capital, if the market is not investible, why would I want to do that?" O'Shea said. "I want to help customers. But if the same thing keeps happening then I don't want any part of it."
The energy crisis has seen a wave of providers go bust in 2021 and 2022 following Russia's invasion of Ukraine, which pushed up energy prices. Ofgem introduced new capital requirements to ensure firms have a buffer to withstand market turbulence, but has not disclosed details on the extent of the shortfalls or how long it will take to rectify them.
O'Shea has called for greater transparency from Ofgem, demanding to know the exact financial situation of struggling providers. He pointed to recent reports that auditors at Ovo Energy, a major supplier with 4 million customers, have raised concerns over the firm's ability to continue as a going concern.
"We are calling for transparency," O'Shea said. "We need to know what is the shortfall, what is the recovery plan."
Ofgem has defended its actions, stating that its regulation has led to the sector now holding around £7.5 billion in assets, a significant improvement from the negative £1.7 billion during the crisis. However, the regulator has not officially disclosed which providers failed to meet its targets.
As the energy crisis continues to unfold, the future of the sector remains uncertain, with the potential for more providers to collapse this winter.
