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Ofgem minded to allow Shell Energy to claim £354k

By Priyanka Shrestha: Monday 9 December 2019

Ofgem has said it is minded to allow Shell Energy to claim up to £354,147 for costs incurred in acting as a Supplier of Last Resort (SoLR) to customers of failed supplier Usio Energy.

First Utility, which rebranded as Shell Energy in March this year, was chosen by the regulator to take on Usio Energy’s 7,000 customers following a competitive process.

An SoLR can make a claim for Last Resort Supply Payment (LRSP) from relevant distribution networks if granted consent to the amount claimed.

Philippa Pickford, Director, Future Retail Markets, Consumers and Markets said: “Shell Energy indicated at the time of the SoLR appointment process that it would not waive its right to make a claim and would claim for the recovery of a percentage of credit balances. In keeping with that commitment, Shell Energy’s claim is for the cost of credit balances owed to customers of Usio when the company ceased trading.

“Shell Energy has indicated that the cost of credit balances for which it is claiming are final and based on actual meter reads.”

Ofgem is consulting on its proposal before it makes the final decision, which is expected in January 2020, on the agreed amount to be recovered from gas and electricity distribution network companies in 2020/21.

Views are sought from interested parties until 10th January 2020.

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