Treatment of costs in respect of Co-operative Energy Limited’s Last Resort Supply Payment claim for Distribution Network Operators

Publication date
27th March 2018
Information type
Policy area

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.

This letter sets out how we expect the Electricity Distribution Network Operators to recover these amounts and how they will be treated under our price control arrangements. These costs will be added to use of system charges to allow for their recovery, but will be excluded from the “Regulated Distribution Network Revenues” term in the Electricity Distribution Licence so that the operation of the remainder of the price control is unaffected.