If you have been following the energy scene, you might have encountered the words ‘supplier of last resort’ or SoLR. Such a concept occurs when an energy supplier is going through numerous insolvency procedures. If not that, an energy supplier is on the verge of stopping its operation entirely. Today’s guide will teach you all there is to SoLR. It will also show how it can help you, so you won’t have to worry about any energy crisis at all.
What Is A Supplier Of Last Resort?
There is a time when an energy supplier ceases to supply a business with gas and electricity. It can happen to anyone, including you. But once it does, do not worry. Your lines and gas supply will not run out immediately. That is all thanks to a supplier of last resort or SoLR. As you utilize the temporary resources, the SoLR process will work on your behalf. In addition, Ofgem will handle the transition to a new supplier for all the affected customers.
Supplier of last resort is both a process and actual energy supplying entity. It is a rather simple procedure. You will receive a notification once your supplier can no longer provide supply or has gone out of business. It will inform you of your supplier’s current state. Plus, it will also let you know who your SoLR will be in the meantime. Another organization, Ofgem, will make sure your business continues to operate with resources until a new supplier takes the previous one’s place and initiates the laminate flooring.
More and more companies go out of business as energy prices fluctuate, alongside other determinants. As a result, Ofgem has doubled its effort in transitioning affected customers to new energy suppliers.
You have to wait for Ofgem once your supplier tells you the news of their bankruptcy or failure to continue operating. The organization will set you up with a new supplier.
Hang On, What Is Ofgem?
Ofgem stands for Office of Gas and Electricity Markets. It operates as a non-ministerial government agency. Ofgem’s primary task is to manage and oversee companies operating under the UK’s gas and electricity networks.
It also handles client transitions from one supplier to another. Not only that, but Ofgem also enacts price control and rate regulations to protect the interests of those who utilize gas and electricity under their watch.
Overall, Ofgem is the overseer of all things gas and electricity-related in the UK. But do not be intimidated by such a premise. The organization only functions to protect businesses and individuals who use gas and electricity to make their industries work and prosper.
Does SoLR Affect My Current Prices?
Your supplier of last resort sets up what is called a “deemed contract.” That means you are now under a temporary contract that replaces your old one. The new supplier will do all it can to meet the same rates as your old ones.
However, not all SoLR companies can perform such a daunting task. You might even have to pay a bit more for the temporary energy you will be using.
How About Switching From One SoLR To Another?
That works as well. The primary role of a supplier of last resort is to keep resources running like using cabinets or refrigerators for your business. It is your right to switch to a new one if you feel like you are getting less but paying more.
You can only do so if the supplying company has taken over the energy you get. The best thing about being under SoLR is that you can switch anytime you like. Not only that, but you will not have to pay any other fees as you exit the supplier’s service.
Your new supplier also has a role. They should prepare for the risk that comes with the transition. Such risks include:
- Liability for a customer’s accrued credit
- Gambling whether both parties will agree with the new SoLR procedure
- Having reduced profits from the transition
You also have the option to look for supplier of last resort switching companies and firms. These organizations will look for the best deals for you and your business. The neat thing about these services is that a number of them do not cost a dime at all. Some of them charge you for their services. All it takes is for you to sign up, and the rest is history.
To Summarize Things
It is not the end of your energy supply once your supplier goes bankrupt or out of service. Ofgem and other agencies will make sure you have enough supply as you switch from one energy supplier to another.
Once you settle with the new supplier, you also have the liberty to change. You can do so once you feel like their service is not up to your standards.
