Ofgem has launched a policy consultation on the proposed Supplier of Last Resort (SoLR) Levy Offset, aiming to bolster consumer protection in cases of supplier failures.
The SoLR safety net guarantees uninterrupted energy supply for customers, along with reimbursement of any credit balances held with the failed supplier.
Ofgem’s proposal seeks to mitigate the financial impact on consumers by shifting the liability of SoLR levy costs to the failed supplier, subject to insolvency proceedings.
Tim Jarvis, Director General for Markets at Ofgem, said: “We’ve already brought in tough new rules to make suppliers more financially stable, which includes requiring suppliers to have their own capital at risk so that they can better withstand shocks.
“If implemented, these new rules would go further towards shielding consumers from the impact of failures in the future and mean that shareholders would not be able to see any return from an insolvency process until the costs of keeping their customers on supply had been met.”
The consultation is open until 5th April, with stakeholders invited to provide feedback on the proposed measures.
Make sure you check out the latest Net Hero Podcast episode:
Net zero is a way to cut your costs and help the planet, so what’s stopping you? Often, it’s just the right help and advice. That’s what we will provide at the Big Zero Show this July. Workshops, expert speakers, case studies and exhibitions. Plus, networking with 1500 peers and potential customers. Register for free now.
