Source · Select Committees · Business and Trade Committee
Recommendation 20
20
Deferred
Paragraph: 86
We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently...
Recommendation
We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently update the Supplier of Last Resort process to address the problems that arose over the last year, including delays in the transfer of customer information by administrators which prevented the retrieval of credit balances, the treatment of customers in debt, and the imbalance of risk between customers and suppliers.
Government response summary AI-generated
The government states that the recommendation to review and update the Supplier of Last Resort process is a matter for the government.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
86
Government Response
Deferred
HM Government · verbatim extract
Deferred
To date, Ofgem has successfully run Supplier of Last Resort (SoLR) processes for 30 suppliers that have failed since August 2021 and ensured continuity of supply for over 1.8 million customers. The SOLR process is a matter for the independent regulator. BEIS maintains a regular dialogue with Ofgem to review lessons learned and understand where processes can be enhanced to improve outcomes. practices. Further measures are being put in place to reduce the costs to consumers arising from supplier failure. Ofgem has developed proposals to ringfence consumer credit balances and renewables obligation payments, which is an important first step. Ofgem has also consulted on measures to preserve the value of existing hedges when a supplier fails. We support actions Ofgem is taking to minimise supplier failure costs through the existing framework and will continue to work together to identify further opportunities to limit these costs where appropriate.
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