Decision for Utilita SoLR Levy True-up Claim for Omni
Decision
- Publication date
- Industry sector
- Supply and Retail Market
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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.
In December 2021 we made temporary changes to the process for a SoLR to make a claim for an LRSP. The temporary process allows 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.
On 29 December 2023 Utilita Energy Limited contacted Ofgem with the intention not to make a final claim for a LRSP and asking us to terminate the true-up agreement. The LRSP agreement enabled Utilita Energy Limited to seek to recover the additional costs incurred by supplying energy to former customers of Omni Energy. We published our minded-to position on terminating the true-up agreement on 22 February 2024.
Following our review of consultation responses, we have now published our final decision on terminating the True-Up agreement with Utilita Energy Limited.