Direction in relation to the treatment of costs in respect of Co-Operative Energy Limited’s Last Resort Supply Payment Claim

Publication date
27th March 2018
Information types
Policy areas

We appointed Co-Operative Energy Limited (“CEL”) as a Supplier of Last Resort with effect from 30 November 2016 to the customers of GB Energy Supply Limited after the latter ceased trading. These Supplier of Last Resort provisions allow CEL to recover certain additional costs as part of taking on this responsibility.  These costs are recovered from Electricity Distribution and Gas Distribution companies who in turn pass these costs onto consumers through their charges.

The CEL Last Resort Supply Payment Claim (“CEL LRSP Claim”) amounts have now been approved and the purpose of this direction is to outline the treatment of these amounts. We are now directing the Gas Distribution Networks to recover costs incurred in respect of the CEL LRSP Claim through the Miscellaneous Pass-Through term of Special Condition 1C of the Gas Transporter Licence, to ensure that they comply with their obligations under Standard Special Condition A48.