Follow up on our review into the arrangements for recovering the costs of supplier failure


Publication date

Industry sector

Supply and Retail Market

On 7 July 2022 we published an open letter launching a review of how the costs of supplier failure are recovered, and in particular whether this recovery takes place through standing charges or unit rates.

Following engagement, we have concluded that while some low consuming users, some of whom may be vulnerable, might benefit from change, there are a number of higher consuming users including vulnerable users that would pay more. We took the view that retaining the current methodology would protect users with greater energy needs, such as disabled users and users with electric heating in areas off the gas grid.

As a result, we will not be directing industry parties to make changes to the methodology.