Decision on last resort levy claims true-up process


Publication date

Industry sector

Supply and Retail Market

When an energy supplier fails, Ofgem may appoint a Supplier of Last Resort (SoLR) for their customers and there is an industry process which enables a SoLR to seek to recover additional costs they face in supplying these customers (known as a ‘Last Resort Supply Payment’). We have consulted on the fair approach to reflecting the costs suppliers faced in supplying customers of the large number of energy suppliers that failed in late 2021, and which it may be appropriate for them to seek to recover.

SoLRs we appointed have already made initial claims for Last Resort Supply Payments. Our decision outlines what suppliers can seek to claim for in their final, true-up claim later this year.

We have also published templates for suppliers to complete and submit to us to make a claim for Last Resort Supply Payments. These templates include details of the methodology suppliers should follow in calculating their costs with supporting information and guidance. There is a template for each of the four cost categories: wholesale costs, credit balances, working capital and other costs.