Ofgem agrees customers can pick up the bill to cover £12.7M in credit balances at latest failed suppliers

Two more suppliers that took on new customers under ‘supplier of last resort’ arrangements, promising to preserve customer credit balances, will be able to recover part of that cost from consumers, Ofgem has agreed.

The latest agreements will call on existing customers for over £12.5 million, which will be recovered from customers through the network element of their bills. The cost is allocated according to the number of customer accounts held by the failed company in each network region.

Ofgem says Ovo Energy will be able to recover £12,372,332, which represents 59% of the credit that Spark’s 290,000 domestic customers had with Spark at the time of the SOLR takeover in November 2018 – an average of £42 per customer.

Shell Energy can recover £354,247, representing 46% of the credit that customers had with failed supplier Usio when Shell (at that time First Utility) took them over – an average of £50, as Usio had around 7000 customers when it failed in October 2018.

Previously Ofgem has agreed to customers covering:

£3,288,604 (63%) of Together Energy’s bill for One Select customers’ credit balances, (as part of a claim for £4.8 million). One Select failed in October 2018.

£11,495,902 of Octopus Energy’s costs in preserving credit balances when it took on Iresa’s customers (an average of £128 per customer)

£10,979,815 (70%) of Co-Operative Energy’s cost in preserving GBES customers’  credit balances  (an average of £69 per customer).