(Alliance News) - Utilities supplier Yu Group PLC on Wednesday said it "welcomes" Ofgem's supplier licensing review consultation and added it has made full payment of its obligations.
UK energy regulator Ofgem launched its supplier licensing review consultation on Tuesday. Ofgem's new entry requirements went into effect in July, aimed at strengthening the criteria used to assess supply licence applications and amending the licence application process.
The regulator's new consultation is focused on the ongoing requirements for active suppliers and arrangements for those companies exiting the market.
Yu said it supports the underlying consultation themes, "promoting more responsible risk management, with enhanced internal governance and increased oversight". According to Yu, its board embraces those principles and the firm "is already well positioned to meet these objectives".
Moreover, Yu said its risk management practices around industry obligations are, in its view, "robust and embedded in the organisation". Moreover, Yu has "made full payment, when due, of its obligations under the government's Renewables Obligation scheme". This was presented in contrast to late payments from "some suppliers".
Yu is intending to respond in due course to the Ofgem consultation.
Chief Executive Bobby Kalar said: "Ofgem's consultation notes the increasing market share achieved by small and medium suppliers. We agree with Ofgem's assessment that poor customer service and poor risk management processes are correlated. Supplier failures create distrust in the market, and leads to costs of failure being shared across the industry and passed on to consumers."
Kalar added: "I welcome Ofgem's consultation and am confident that Yu Group can continue to bring a fresh approach to what is an enormous market across Great Britain."
Shares in Yu were untraded at 81.50 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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Yu Energy (YU.)