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<p>A Supplier of Last Resort (SoLR) appointed through a competitive process may make
a claim to recover some of the costs they incur via an industry-wide levy. None of
the levy costs are met by the public purse. The recovery of any tax arrears in an
insolvency is a matter for the administrators and HMRC.</p><p> </p><p>The Department
is not able to make estimates of the expected costs as a result of the SoLR process.
The costs of an insolvency will depend on the circumstances of each case and variables
such as the number of customers, the short term costs of ensuring they continue to
be supplied with energy, the settlement of customer bills and the costs absorbed by
the incoming supplier. It is for Ofgem, as the expert regulator, to scrutinise the
costs in any levy claim and to consult with industry and interested parties before
any decision is taken to use the levy.</p>
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