SoLR Levy Offset Statutory Consultation
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closed date
- Industry sector
- Supply and Retail Market
Related links
When an energy company fails, it is essential that its customers still have an energy supplier and our Supplier of Last Resort (SoLR) safety net guarantees this.
In February 2024 we launched a policy consultation on introducing the ‘SoLR Levy Offset’. This forms part of our wider work to strengthen the financial resilience of the retail energy market and mitigate the impact of supplier failures on consumers.
The SoLR Levy Offset would place an obligation on suppliers to enter a deed of undertaking to pay the networks the amount of any SoLR levy claim if the supplier failed and a SoLR was appointed - helping protect consumers from costs of future supplier failures. This would then be recoverable through the insolvency process where the failed supplier has residual assets available to pay creditors.
We are now consulting on the changes required to the gas and electricity supply licences, and the gas and electricity distribution licences, to implement the proposals.
The consultation closes on 17 October 2024 and we welcome views from distribution networks, consumer groups, charities, government bodies, the insolvency sector, and trade associations. We also welcome responses from other stakeholders and the public.
If adopted, this new rule will apply from early 2025.