UK Energy Regulator to Speed Up Payments to Suppliers of Last Resort
December 01 2021 - 9:10AM
Dow Jones News
By Jaime Llinares Taboada
U.K. energy regulator Ofgem said Wednesday that it intends to
proceed with its planned temporary changes to the Supplier of Last
Resort system.
In October, Ofgem proposed to sped up the process for these
suppliers to claim any additional costs that they may incur as a
result of taking new customers over.
Specifically, the regulator proposed to consider more than a
single claim per supplier of last resort, and to start payments
from April 2022 providing claims are made, decided upon and
received prior to the end of 2021.
"Having considered all the responses and in light of the broad
level of support we received, and our continued view that we need
to make the temporary changes we set out in our letter to maintain
the SoLR process and protect consumers through the current extreme
market conditions, we intend to proceed with our proposal," Ofgem
said Wednesday in a letter to stakeholders.
The scale of costs that firms face in supplying new customers
under current market conditions is such that speeding up payments
will help support the Supplier of Last Resort process and secure
energy supply for customers of failed companies, Ofgem had said in
October.
Since August, 25 U.K. energy retailers have gone out of business
as a result of soaring wholesale prices. Their customers have been
transferred by Ofgem to suppliers of last resort such as Scottish
Power, British Gas, Shell Energy, E.ON Next, EDF and Octopus
Energy.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
December 01, 2021 08:55 ET (13:55 GMT)
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