Regulator Ofgem says it is inclined to accept Together Energy’s claim for a £4.8 million payment to settle the costs it incurred during the supplier of last resort (SoLR) process in December last year.
During the SoLR process, the Scottish company took over the 36,000 customers of failed supplier One Select.
In January, Together Energy gave notice to Ofgem of its intention to submit a claim for a last resort supply payment (LRSP).
Ofgem published its provisional decision, which is subject to a consultation and final approval, in an open letter today (28 June).
The letter, written by Philippa Pickford, Ofgem’s director of future retail markets, says the regulator is minded to allow the supplier to claim for the costs of protecting the credit balances One Select owed to its customers and certain other costs incurred, as part of the process.
| Item | Cost category associated with SoLR | Cost claimed by Together Energy (£) |
| 1 | Recovery of 63% of One Select customers’ net credit balances | 3,288,604 |
| 2 | Wholesale energy emergency purchase | 21,381 |
| 3 | IT migration, data cleansing and billing | 776,544 |
| 4 | Interest on LRSD payment profile | 716,901 |
Paul Richards, chief executive of Together Energy, said: “We are pleased with the conversations we have had with Ofgem.
“The SoLR process has been challenging – but we are proud of our achievements and the agility of our team.”
Ofgem said it is expecting to make a final decision on the matter in August to enable the agreed amount to be recovered through relevant network charges in the period 2019/20 for electricity and 2020/21 for gas.
Industry stakeholders have until 26 July to respond to the consultation.