Last Resort Supply Payment claims minded-to positions 2026: British Gas (Rebel Energy)

Consultation description

Following the appointment of a Supplier of Last Resort (SoLR), Ofgem manages an industry process which enables the supplier to seek to recover additional costs they face in supplying the transferred customers. This is known as a Last Resort Supply Payment (LRSP). Doing so ensures suppliers continue to come forward to act as SoLRs, and it is through this mechanism that customer credit balances are protected when a supplier fails. LRSPs are paid for by the relevant gas and electricity network operators, who then recover the cost through charges to suppliers.

We expect SoLRs to demonstrate steps taken to minimise costs. Ofgem decides on a case-by-case basis whether it is in consumers’ interests to grant our consent to recover costs.

In December 2021 we made temporary changes to the process for a SoLR to make a claim for an LRSP. The temporary process allowed SoLRs that had been appointed since 1 September 2021 to submit an initial claim for immediate costs incurred, and subsequent ‘true-up’ claims for additional costs. In August 2025, we implemented licence changes to make this multi-claim process a permanent feature of the regulatory framework, with new SoLRs also signing a deed of undertaking to facilitate this.

We have now assessed the initial LRSP claims made by British Gas Trading Limited and have published our minded-to position on the claims received by Ofgem. Our assessment was carried out against the relevant licence conditions and/or our criteria and methodology to determine that the costs are additional, directly incurred as part of the SoLR role, otherwise unrecoverable, and economic.

Who should respond

• Gas and electricity suppliers
• Electricity distribution network operators
• Gas transporters
• All other interested parties

How to respond

Submit your response by 9 October 2026 by emailing SoLRLevyteam@ofgem.gov.uk.