(Bloomberg) -- The UK’s energy regulator Ofgem is increasing its scrutiny of suppliers in the wake of a crisis that’s seen more than two dozen go bust.

Ofgem is expanding compliance reviews for energy firms, requiring companies to respond to four additional assessments to ensure they monitoring risks to their financial health and setting fair tariffs for customers, according to a letter sent to energy suppliers and seen by Bloomberg News. The move adds to four other steps already announced in April as the regulator expects energy bills to soar another 42% in October.

“We intend these to start a culture change in our engagement with the energy retail sector, which will see a much stronger focus on obtaining proactive assurance that suppliers are set up to deliver high standards for consumers and are fit to operate in the market,” according to the letter signed by Neil Lawrence, director of retail at Ofgem.

More than 4 million British households have seen their energy supplier go out of business since August as wholesale energy prices spiked and firms couldn’t pass on their costs to consumers. Ofgem is stepping up its checks after criticism that it hadn’t ensured suppliers were run by competent executives who were financially prudent.

Energy suppliers have met the deadline for one of Ofgem’s market compliance reviews, UK Business Secretary Kwasi Kwarteng said on Tuesday, adding that Ofgem would analyze the responses and take “enforcement action” where necessary.

Ofgem couldn’t immediately comment.

The four new reviews cover:

  • Fit and proper: Assessment of control frameworks to ensure ongoing “fit and proper” requirements and for reporting on senior personnel changes.
  • Risk management: Identifying and monitoring risk, with a specific focus on financial risk.
  • Tariff setting: Ensuring tariffs are sustainable and fair.
  • Asset ownership: Control and ownership of significant assets.

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