Ofgem plans to allow Together Energy to reclaim nearly £5 million in costs it incurred when it took over failed supplier OneSelect’c customers.
Together Energy was one of six companies who competed to take on the customers as part of Ofgem’s ‘supplier of last resort’ process.
It has claimed £3.2 million to cover two thirds of the cost of protecting customers’ credit balances (Together has born one third of the cost). That includes a number of closed accounts where few customers have made a claim, and Ofgem says the final claim will take account of unclaimed credit.
It also claimed £776k for data cleaning, IT migration and billing, and £21k for additional wholesale energy purchases in December 2018 when it took over the customers. An additional claim of £716k is its estimate of interest that will be incurred on the working capital employed during the SOLR process. That figure may change as the costs listed will be recovered from customer bills over the next two years.
Ofgem is consulting on the proposed allowances and has asked for responses by 26 July