What is Supplier of Last Resort (SoLR)

The recent increase in wholesale global gas prices is impacting the UK, as we slowly recover from the impacts of COVID-19. These are unparalleled times in the UK energy market and it is anticipated that we will see more energy suppliers exiting the market in the coming months. At this point, Ofgem appoints a Supplier of Last Resort.

 

What is Supplier of Last Resort (SoLR)?

In the unfortunate event of an energy supplier going out of business, Ofgem, the independent energy regulator, automatically appoints a new supplier, known as a ‘Supplier of Last Resort’ (SoLR).

 

Supplier of Last Resort requirements?

Any new energy supplier is assessed by Ofgem and appointed as quickly as possible, to ensure there is no interruption to the supply of energy.

Suppliers must meet several requirements, but, fundamentally, they must show they can take on the new customers without any significant impact on their existing customers.

The SoLR must also show it has the means and ability to secure enough gas and electricity to supply these new customers without significant cost to those customers.

Ofgem will also conduct a review of the profile of the existing customers of the failed energy supplier, this takes into consideration:

  • The energy supplier’s ability to handle issuing bills without delay
  • Its call centre capability
  • Whether it will voluntarily reimburse any customers’ credit balances

If no supplier volunteers to accept the customers of a failed supplier, Ofgem will appoint the supplier they deem best suited to the job.

Ofgem states that their top priority in choosing the SoLR is “to ensure that all customers continue to receive supplies of gas and/or electricity.”

Read more about what a customer should do if their energy supply falls into the SoLR process.

 

Collapsed suppliers and the take-over Supplier of Last Resort

DATE

SUPPLIER

CUSTOMERS

NEW SUPPLIER

7th September

MoneyPlus Energy

9,000

British Gas

7th September

PFP Energy

82,000

British Gas

14th September

Utility Point

220,000

EDF

14th September

People’s Energy

350,000

British Gas

22nd September

Green Supplier Ltd.

255,000

Shell Energy

22nd September

Avro energy

580,000

Octopus Energy 

29th September

Igloo Energy

179,000

E.ON

29th September

ENSTROGA

6,000

E.ON

29th September

Symbio Energy

48,000

E.ON

A detailed Supplier of Last Resort guide can be accessed courtesy of Citizens Advice   

 

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