The energy supplier is seeking to claim certain additional costs incurred after taking on the 7,500 domestic customers and 500 business customers of Solarplicity after the company went bust in 2019.
A SoLR is able to make a claim for a last resort supply payment from relevant distribution networks after receiving consent for the amount by the regulator.
Ofgem’s approval will allow EDF to recover the costs of protecting the credit balances owed to former customers of Solarplicity and certain other costs incurred in complying with the terms of the Last Resort Supply Direction.
Lesley Nugent, Deputy Director, Retail Directorate at Ofgem said: “We are satisfied that the revised and final claim represents no more than the total cost incurred by EDF in complying with the LRSD. On balance, given all specific circumstances of this levy claim case and taking into consideration all information available to us, our decision is to consent to EDF recovering a LRSP [Last Resort Supply Payment] of up to £4.2m.
“EDF will be paid the amounts specified in the gas and electricity consents published alongside this decision, by the relevant licenced gas and electricity network companies. This will be recovered by the relevant gas and electricity distribution networks allocated in proportion to the total number of nationwide gas and electricity supply points.”