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>
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>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"} } , "answeringMemberConstituency" : {"_value" : "Devizes"} , "answeringMemberPrinted" : {"_value" : "Claire Perry"} , "dateOfAnswer" : {"_value" : "2019-01-21", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-01-21T15:26:09.707Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-01-15", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Energy: Prices"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 14 January 2017 to Question 206232 on Energy: Prices, what estimate he has made of the total cost incurred by (a) the public purse and (b) other energy suppliers as a result of the transfer of customers of domestic energy suppliers who cease trading through the Supplier of Last Resort process in each year since 2010.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/308", "label" : {"_value" : "Biography information for Mr Jim Cunningham"} } , "tablingMemberConstituency" : {"_value" : "Coventry South"} , "tablingMemberPrinted" : [{"_value" : "Mr Jim Cunningham"} ], "uin" : "208752"} , {"_about" : "http://data.parliament.uk/resources/1037279", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1037279/answer", "answerText" : {"_value" : "
Last week this Government delivered on its promise to cap energy prices.<\/p>
<\/p>
It now protects over 11 million households, ensuring the energy market works for all customers and saving consumers up to around £130 a year.<\/p>
<\/p>
We continue to invest at least £640m in energy efficiency annually until 2028 and are also delivering on our smart meter programme.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"} } , "answeringMemberConstituency" : {"_value" : "Devizes"} , "answeringMemberPrinted" : {"_value" : "Claire Perry"} , "dateOfAnswer" : {"_value" : "2019-01-08", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-01-08T15:30:32.077Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-01-08", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Energy: Prices"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "What steps he is taking to support people with the cost of household energy bills.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/44", "label" : {"_value" : "Biography information for Sir David Amess"} } , "tablingMemberConstituency" : {"_value" : "Southend West"} , "tablingMemberPrinted" : [{"_value" : "Sir David Amess"} ], "uin" : "908450"} , {"_about" : "http://data.parliament.uk/resources/1037815", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1037815/answer", "answerText" : {"_value" : "
In the event of an energy supplier insolvency, the Supplier of Last Resort (SoLR) process allows a quick transfer of customers to another supplier appointed by Ofgem and ensures credit balances are protected.<\/p>
<\/p>
As a result of the competitive SoLR processes, successful suppliers have agreed to absorb a proportion of the costs of the process and claim some of the remaining costs via the industry-wide SoLR levy. The amount claimed through the levy will vary depending on the terms of the successful SoLR bid and other factors such as number of customers and how much credit they have built up. It takes time for the extent of some SoLR-related costs to become clear and Ofgem consult with industry and interested parties before any levy claim decision is taken.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"} } , "answeringMemberConstituency" : {"_value" : "Devizes"} , "answeringMemberPrinted" : {"_value" : "Claire Perry"} , "dateOfAnswer" : {"_value" : "2019-01-14", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-01-14T17:48:14.327Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-01-08", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Energy: Prices"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the effect on the energy bills of consumers of domestic energy suppliers ceasing trading.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/308", "label" : {"_value" : "Biography information for Mr Jim Cunningham"} } , "tablingMemberConstituency" : {"_value" : "Coventry South"} , "tablingMemberPrinted" : [{"_value" : "Mr Jim Cunningham"} ], "uin" : "206232"} , {"_about" : "http://data.parliament.uk/resources/1037078", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1037078/answer", "answerText" : {"_value" : "
BEIS publishes statistics on international energy price comparisons[1]. These show that for the UK, industrial gas prices are among the lowest in the EU-15 but industrial electricity prices have risen to be the most expensive for large and extra-large users of electricity.<\/p>
The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. Higher industrial electricity prices in the UK partly reflect how the costs of the electricity system are distributed across household and industrial customers. For example, while very large German industrial users pay electricity prices that are lower than those in the UK, German households faced electricity prices that were 68 per cent higher than UK households in 2017.<\/p>
In his recent energy speech, my rt. hon. Friend the Secretary of State set out the importance of a fair distribution of costs and the principles that are intended to deliver policies that will lower the costs of the electricity system permanently. Further details will be set out in a White Paper this year.<\/p>
The Budget on 29 October 2018 announced that £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector.<\/p>
The Government also continues to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, reducing the indirect cost of energy and climate change policies on their energy bills by up to 80 per cent.<\/p>
<\/p>
[1] https://www.gov.uk/government/statistical-data-sets/international-industrial-energy-prices<\/a><\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"}
}
, "answeringMemberConstituency" : {"_value" : "Devizes"}
, "answeringMemberPrinted" : {"_value" : "Claire Perry"}
, "dateOfAnswer" : {"_value" : "2019-01-10", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-01-10T16:58:26.047Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-01-07", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Energy: Prices"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department monitors the (a) difference in and (b) reasons for the difference in industrial energy prices between the UK and its competitors to enable informed policy making.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/1548", "label" : {"_value" : "Biography information for Jessica Morden"}
}
, "tablingMemberConstituency" : {"_value" : "Newport East"}
, "tablingMemberPrinted" : [{"_value" : "Jessica Morden"}
], "uin" : "205864"}
, {"_about" : "http://data.parliament.uk/resources/1020785", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1020785/answer", "answerText" : {"_value" : " The Government has taken a range of actions to reduce the cost of energy \u2013 including protecting 11 million households from poor value energy tariffs through the introduction of a price cap, and providing a package of relief for energy intensive industries worth over £850 million since 2013, supplemented by the announcement of a £315 million Industrial Energy Transformation Scheme at the Budget.<\/p> <\/p> In his speech of 15th November (available on gov.uk), my rt. hon. Friend the Secretary of State for Business, Energy and Industrial Strategy set out his strategic approach to ensure consumers get a fair deal for their energy, while opening up the market to competition.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"}
}
, "answeringMemberConstituency" : {"_value" : "Devizes"}
, "answeringMemberPrinted" : {"_value" : "Claire Perry"}
, "dateOfAnswer" : {"_value" : "2018-12-17", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "200119"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-12-17T16:22:04.99Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2018-12-07", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Energy: Prices"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to ensure that the UK has the lowest energy prices in the EU.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4056", "label" : {"_value" : "Biography information for Nic Dakin"}
}
, "tablingMemberConstituency" : {"_value" : "Scunthorpe"}
, "tablingMemberPrinted" : [{"_value" : "Nic Dakin"}
], "uin" : "200123"}
, {"_about" : "http://data.parliament.uk/resources/968109", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/968109/answer", "answerText" : {"_value" : " The Domestic Gas & Electricity (Tariff Cap) Act places a duty on Ofgem to set a temporary price cap on standard variable and default tariffs.<\/p> <\/p> On 6th September 2018, Ofgem published a statutory consultation, in which they propose a methodology for setting the cap level which takes account of supplier costs including for the wholesale cost of energy. Ofgem propose setting the initial level of the cap at £1,136 and will update the cap on a regular basis to reflect changes in costs, including wholesale energy prices.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"}
}
, "answeringMemberConstituency" : {"_value" : "Devizes"}
, "answeringMemberPrinted" : {"_value" : "Claire Perry"}
, "dateOfAnswer" : {"_value" : "2018-09-13", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-09-13T15:22:09.167Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2018-09-05", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Energy: Prices"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that utility companies pass on decreases in wholesale energy prices to consumers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4488", "label" : {"_value" : "Biography information for Martyn Day"}
}
, "tablingMemberConstituency" : {"_value" : "Linlithgow and East Falkirk"}
, "tablingMemberPrinted" : [{"_value" : "Martyn Day"}
], "uin" : "170771"}
, {"_about" : "http://data.parliament.uk/resources/964221", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/964221/answer", "answerText" : {"_value" : " The Department does not hold data on the cost of electricity supplied by energy companies without charge.<\/p> <\/p> Ofgem regularly reports on energy customer debt as part of the monitoring of their Consumer Vulnerability Strategy. Their latest report can be found online at:<\/p> https://www.ofgem.gov.uk/publications-and-updates/consumer-vulnerability-strategy<\/a><\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"}
}
, "answeringMemberConstituency" : {"_value" : "Devizes"}
, "answeringMemberPrinted" : {"_value" : "Claire Perry"}
, "dateOfAnswer" : {"_value" : "2018-09-13", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-09-13T15:19:52.953Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2018-09-03", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Energy: Prices"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent estimate he made of the cost of electricity being supplied by utility companies without charge to the user.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/1400", "label" : {"_value" : "Biography information for Kevin Brennan"}
}
, "tablingMemberConstituency" : {"_value" : "Cardiff West"}
, "tablingMemberPrinted" : [{"_value" : "Kevin Brennan"}
], "uin" : "169124"}
, {"_about" : "http://data.parliament.uk/resources/964222", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/964222/answer", "answerText" : {"_value" : " BEIS Ministers and officials meet energy companies to discuss a range of issues.<\/p> <\/p> Ofgem rules require energy suppliers to engage with their customers when they become aware they may be in payment difficulty and offer the opportunity to repay money owed through a repayment plan.<\/p> <\/p> Energy suppliers can ultimately disconnect customers who fail to agree, or stick to an agreed repayment plan. Alternatives to disconnection include recovery of debt directly from certain benefits or the installation of prepayment meter, either by agreement or under a warrant to recover the money owed, but only where it is safe and reasonably practicable to do so.<\/p> <\/p> Vulnerable customers, eligible for the Priority Services Register, cannot be disconnected during the winter months (1 October- 31 March) and many suppliers have signed a \u2018safety net\u2019, a pledge to never knowingly disconnect a vulnerable customer at any time of year.<\/p> <\/p> Suppliers should signpost vulnerable customers in debt to impartial advice and specialist support services, such as the Extra Help Unit, run by Citizens Advice.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3974", "label" : {"_value" : "Biography information for Claire Perry"}
}
, "answeringMemberConstituency" : {"_value" : "Devizes"}
, "answeringMemberPrinted" : {"_value" : "Claire Perry"}
, "dateOfAnswer" : {"_value" : "2018-09-13", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-09-13T15:19:37.9Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2018-09-03", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Energy: Prices"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent discussions he has had with utility companies on reducing the number of instances where electricity is supplied without charge to the user.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/1400", "label" : {"_value" : "Biography information for Kevin Brennan"}
}
, "tablingMemberConstituency" : {"_value" : "Cardiff West"}
, "tablingMemberPrinted" : [{"_value" : "Kevin Brennan"}
], "uin" : "169125"}
, {"_about" : "http://data.parliament.uk/resources/931552", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/931552/answer", "answerText" : {"_value" : " The strike prices for all energy projects awarded a Contract for Difference in the UK since 2012 are published on the Government\u2019s website.<\/p> The strike prices awarded in CFD Allocation Round 2 are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/643560/CFD_allocation_round_2_outcome_FINAL.pdf<\/a>.<\/p> The strike prices awarded in CFD Allocation Round 1 are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/407059/Contracts_for_Difference_-_Auction_Results_-_Official_Statistics.pdf<\/a>.<\/p> The strike prices awarded to FIDER enabled CFD projects are published at: https://www.gov.uk/government/news/record-investments-of-40-billion-in-renewable-electricity-to-bring-green-jobs-and-growth-to-the-uk<\/a> and the details of the projects awarded those contracts are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/305781/Successful_Projects.pdf<\/a>.<\/p>