Decision on introducing a minimum capital requirement and ringfencing customer credit balances by direction

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Decision on Strengthening Financial Resilience

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Decision to introduce common minimum capital requirements for domestic suppliers and modify the licence so that Ofgem can direct suppliers to ringfence customer credit balances when in the consumer interest.

These reforms are part of a package of measures to build the capitalisation of the sector, enhance resilience to external shocks and put the retail market on a solid foundation to deliver the innovation, high standards and consumer outcomes needed to achieve our principal objective: to protect the interests of existing and future consumers.

This page has been updated to include the Erratum Notice for SLC 4B that was issued on the 20th September 2023.

17 July 2024

For the most current versions of Renewables Obligation (RO) and Customer Credit Balance (CCB) templates and guidance, please refer to our Decision on operational changes to Renewables Obligation and Customer Credit Balance Ringfencing guidance and templates.

Main document

[Decision on Introducing a Minimum Capital Requirement and Ringfencing Customer Credit Balances by Direction [PDF, 633.35KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/FRC%20Decision%20doc%20-%20July%202023.pdf)

Subsidiary documents

[Revised impact assessment of Strengthening Financial Resilience proposals (July 2023) [PDF, 1.65MB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Revised%20impact%20assessment%20of%20Strengthening%20Financial%20Resilience%20proposals.pdf)

[Revised Impact assessment model (July 2023) [XLSX, 599.12KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Public%20version%20-%20FRC%20IA%20model%20July%202023.xlsx)

[Guidance on the Operational Capability and Financial Responsibility Principles [PDF, 446.49KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/FRP%20Guidance%20for%20decision%20-%20JULY%202023%20%281%29.pdf)

[Decision Notice - SLC 4B Electricity [PDF, 255.13KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Decision%20notice%20SLC%204B%20Elec16903022027451690303531933.pdf)

[Decision Notice - SLC 4B Gas [PDF, 257.45KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Decision%20notice%20SLC%204B%20Gas16903022086311690303537837%20%281%29.pdf)

[Decision Notice - SLC 4D Electricity [PDF, 241.38KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Decision%20notice%20SLC%204D%20Elec%2016903022176571690303546150.pdf)

[Decision Notice - SLC 4D Gas [PDF, 240.67KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Decision%20notice%20SLC%204D%20Gas%2016903022231961690303551225.pdf)

[CCB Erratum Notice [PDF, 211.80KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-09/CCB%20Erratum%20notice.pdf)

Protection Mechanism Templates

[Standby Letter of Credit (CCB) [PDF, 205.09KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-08/OFGEM%20TEMPLATE%20SBLC%20FOR%20DCCB%20Final.pdf)

[First Demand Guarantee [PDF, 238.31KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-08/OFGEM%20TEMPLATE%20FIRST%20DEMAND%20GUARANTEE%20FOR%20DCCB%20FINAL.pdf)

[Declaration of Trust [PDF, 233.04KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-08/Declaration%20of%20Trust%20Template%20Final.pdf)

Related links

Decision on Strengthening Financial Resilience

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