Recovery by gas transporters of Last Resort Supply Payments
Call for input
- Publication date
- Industry sector
- Distribution Network
- Supply and Retail Market
- Decision
This open letter relates to recovery of Last Resort Supply Payment (LRSP) claims arising from failed energy retail suppliers going through the Supplier of Last Resort (SoLR) process.
We are consulting on options for the recovery of LRSP claims from domestic gas customers connected directly to Gas Distribution Networks (GDNs) and those connected via Independent Gas Transporters (IGTs).
We are consulting on three options for an interim solution and an enduring solution.
Interim option 1, our preferred interim option, is an intra-year revision to tariffs by Gas Distribution Networks (GDNs). The Supplier of Last Resort (SoLR) continue to be paid directly by GDNs.
Interim option 2 is for both GDNs and IGTs to pay money to the SoLR.
Interim option 3 is to lower 2023/24 tariffs instead of adjusting 2022/23 tariffs.
Our proposed enduring solution for network charges from 2023/24 onwards is for a new UNC mod to allow GDNs to recover an LRSP charge from all customers, rather than just their own customers, both domestic and non-domestic.
Respond name
Andrew Ryan