British households face an £80m bill to cover the costs of transferring more than half a million customers from bust energy firms, raising questions over whether the regulatory regime is fit for purpose.

Eight suppliers have ceased trading this year amid rising wholesale prices, forcing energy regulator Ofgem to step in and appoint new suppliers. Four have collapsed in the past two months alone, including One Select on Monday.

Each of the UK’s 28m homes could have an average of £1.75 added to their energy bills to compensate the new suppliers, according to a Guardian analysis.

Ovo, ScottishPower and other suppliers who have taken on customers of failed firms can recoup some costs through a mechanism known as “Supplier of Last Resort”, ultimately paid for by all consumers via their bills, according to The Guardian.

Those claims will take months to settle, but there are historical figures that provide a guide to the bill awaiting consumers.