What is the ‘supplier of last resort’?

When the Office of Gas and Electricity Markets (Ofgem) revokes a Supply Licence (usually because of Insolvency), it can appoint a ‘supplier of last resort’ (SoLR) on a case-by-case basis to take over the supply of gas and/or electricity to the insolvent supplier’s customers. The aim is to protect the customers of the failed supplier by ensuring seamless continuity of service for customers. The regulatory regime for this is primarily provided for in the Standard Conditions of the supply licences held by Great Britain’s (GB’s) electricity suppliers and gas suppliers.

(For more information on GB’s energy licensing regime more generally, see Practice Notes: An Introduction to Electricity Licensing in Great Britain and The GB Onshore Gas Market and its Regulatory Framework.)

The SoLR regime applies in both gas and electricity. References in this Practice Note to ‘Standard Conditions’ are to both the Standard Conditions of Gas Supply Licences and to the Standard Conditions of Electricity Supply Licences, unless stated otherwise.

When will a supplier of last resort be appointed?

Ofgem’s