Ofgem wants you to believe that the new ringfence measures are tough. It's definitely correct that they should be. The collapse of 28 energy suppliers has left about 400 million dollars of customer money empty.
The regulatory boast of being tough is premature. Jonathan Brearley, Ofgem's chief executive, said that a plan to prevent deposits from being used like credit cards would be adopted immediately. Suppliers would have to raise equity in order to replace deposits they have been using as working capital, but a regulator would insist that they do.
That isn't Ofgem's plan at the moment. It has entered a world of consultation. The end of the year is when full ringfencing is supposed to be introduced by the regulators. It wants to understand the magnitude of any risks to supplier business models.
It is prepared to listen to pleas that full and immediate protection of deposits would tip some suppliers over the edge. Domestic suppliers could be able to accommodate only 30% of ringfencing this winter, according to the document.
It would be a sign of regulatory weakness if a 30% outcome was ring-fencing-lite. If that figure rose again this winter, it would be a shame.
The due statutory process must be followed by Ofgem. It needs to face down the cries for delay and long transitions. Brearley needs to live up to the promises he made. There was no back-sliding.
Some of the passengers with booked flights are in the dark as well. An estimate of what resilience measures mean in financial terms was not included in the airline's announcement that it is "proactivelyConsolidating" a few thousand flights over the summer.
The statement said there would be a cost impact. The number of affected passengers taking up the offer of an alternative flight depends on a lot. The compensation bill that easyJet will end up paying is still large, even though the percentage should be high. The City had thought the company would break even this year, but now it is looking like it will lose money.
One terrible summer doesn't interrupt long-term recovery prospects, according to the bullish case. The disruption might have long-term consequences for airlines. The consumer body Which? told MPs last week that passengers' rights are being violated. The industry isn't in a position to complain if the current turmoil causes the rules to be changed.
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If City analysts are correct, operating profits at Primark will be over 800m this year. Last week, Asos was warned that the figure could be as little as 20 million dollars. Why would Primark want to try out a click and collect service?
The answer seems straightforward. Customers still have to go to the store to buy more stuff. In 25 stores in the north-west of England, a trial of children's clothing and accessories is being conducted.
It is almost certain that a conversion to a full online offer will never happen. The economics don't work at the cheap end of the market. One suspects that conviction is greater than ever given Asos' latest troubles. Don't bother with the hassle by copying the bits that work. A good move.
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