Decision on last resort levy true-up claims 2022

Publication date

Industry sector

Supply and Retail Market

On 1 December 2021 we published our decision setting out our temporary changes to the process for a Supplier of Last Resort (SoLR) to make a claim for a Last Resort Supply Payment (LRSP). These changes were required to ensure the SoLR process continued to protect consumers through the current extreme market conditions. The temporary process allowed SoLRs that had been appointed since 1 September 2021 to submit an initial claim for costs incurred before December 2021 as a result of supplying SOLR customers, and subsequent ‘true-up’ claims for any additional costs incurred. We assessed the initial claims in December 2021 and published our decisions on the Faster SoLR levy process: consents to Last Resort Supply Payments report.

In June 2022 we published our consultation on the SOLR Levy True Up Claims Process, and published our decision in September 2022.

In October we invited Suppliers to submit their claims for the 2022 period for the SOLR Levy True Up claims, and consulted on our Minded to Positions on these claims in November 2022. 

We have now assessed the submitted true-up claims and have published our decision on each of the claims received by Ofgem. We have also published our consent documents to allow SoLRs to claim this from the networks.

In addition, we have received two SoLR levy claims associated with SoLRs appointed before we introduced the temporary changes to the SoLR levy process and two initial SoLR levy claims for SoLRs appointed after December last year. We have also published our decision and consents on these claims.
 
As well as this, we have also published a Direction to enable the Gas Distribution network companies to recover the SoLR levy claim amounts under Special Condition 6.1 of the Gas Transporter Licence. No equivalent Direction is required for the Electricity Distribution network companies
 

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