SoLR Levy Offset: decision
Decision
- Publication date
- Industry sector
- Distribution Network
- Supply and Retail Market
- Licence type
- Electricity Distribution Licence
- Gas Transporter Licence
- Electricity Supply Licence
- Electricity Distribution Licence
- Decision for
- SoLR Levy Offset Statutory Consultation
Topic
Gas distribution
When an energy company fails, it is essential that its customers still have an energy supplier and our Supplier of Last Resort (SoLR) safety net guarantees this.
We have now introduced new rules called the ‘SoLR Levy Offset’. The SoLR Levy Offset forms part of our wider work to strengthen the financial resilience of the retail energy market and mitigate the impact of supplier failures on consumers.
The SoLR Levy Offset places an obligation on suppliers to enter a deed of undertaking to pay the networks the amount of any SoLR levy claim if the supplier failed and a SoLR was appointed - helping protect consumers from costs of future supplier failures. This is recoverable through the insolvency process where the failed supplier has residual assets available to pay creditors.
We are grateful for the responses from all stakeholders to our policy and statutory consultations and the helpful feedback we have received during this process.
We are now confirming the changes made to the gas and electricity supply licences, and the gas transportation and electricity distribution licences, to implement the proposals.
The changes take effect from 1 October 2025.