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>
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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/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>
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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/852587", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/852587/answer", "answerText" : {"_value" : "
The table below outlines the network cost component of the average dual fuel bill from 2013 to 2016. This is the longest period for which there is comparable data for a dual fuel (gas and electricity) bill.<\/p>
These data are published by Ofgem and based on realised costs as reported by the six largest energy companies in their annual Consolidated Segmental Statements, which can be found - https://www.ofgem.gov.uk/system/files/docs/2018/02/february-bills-prices-profits.pdf<\/a><\/p> <\/p>