Decisions on Last Resort Supply Payment Claims 2024
Summary
Ofgem decisions on Last Resort Supply Payment claims for 2024. LRSPs allow Suppliers of Last Resort to recover additional costs of taking on transferred customers when another supplier fails; the cost is socialised through gas and electricity network charges.
Why it matters
Annual LRSP claim cycle. Sister decision to the 2025 claims (published August 2025) and the broader LRSP regime that became a permanent multi-claim feature in August 2025. Claim size each year is a leading indicator of retail-market health.
Areas affected
Memo
Decisions on Last Resort Supply Payment Claims 2024 | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Decisions on Last Resort Supply Payment Claims 2024 Publication type: Decision Publication date: 13 December 2024 Topic: Gas supply Decision for: Last Resort Supply Payment claims minded-to positions 2024 E.ON Next Last Resort Supply Payment minded-to position 2024 Print this page Related links Decisions on Last Resort Supply Payment Claims 2023 Decision on last resort levy true-up claims 2022 Share the page Share on Facebook Share on Twitter Share on LinkedIn Following the appointment of a Supplier of Last Resort (SoLR), Ofgem manages an industry process which enables the SoLR to seek to recover additional costs faced in supplying the transferred customers. This is known as a Last Resort Supply Payment (LRSP). Doing so ensures suppliers continue to come forward to act as SoLRs, and it is through this mechanism that customer credit balances are protected when a supplier fails. LRSPs are paid for by the relevant gas and electricity network operators, who then recover the cost through charges to suppliers. We expect SoLRs to demonstrate the steps taken to minimise these costs. Ofgem decides on a case-by-case basis whether it is in consumers’ interests to grant our consent to recover costs. In December 2021 we made temporary changes to the process for LRSP claims. The temporary process allows SoLRs that had been appointed since 1 September 2021 to submit an initial claim for immediate costs incurred, and subsequent ‘true-up’ claims for additional costs. If our assessment finds that an overpayment has been made in a previous claim, the SoLR is required to repay the excess through the same industry processes. Following our decisions in 2021, 2022 and 2023 on claims submitted by SoLRs, Ofgem received further claims from SoLRs on 1 August 2024. We published minded-to positions on these claims for consultation on 27 September 2024 and 16 October 2024. Following our review of consultation responses, we have now published our final decisions on these claims. Our assessment was carried out against the relevant licence conditions and/or our criteria and methodology to determine that the costs are additional, directly incurred as part of the SoLR role, otherwise unrecoverable, and economic. The publications include our decision and consent documents, and necessary directions to industry parties to enable the payments to take effect. Main document Last Resort Supply Payment Decisions 2024 [ZIP, 1.88MB] Subsidiary documents Electricity Consents [ZIP, 895.15KB] Gas Consents [ZIP, 886.19KB] Repayment Directions [ZIP, 476.51KB] Last Resort Supply Payment Miscellaneous Passthrough Under Special Condition 6.1 of the Gas Transporter Licence [PDF, 180.07KB] Print this page Related links Decisions on Last Resort Supply Payment Claims 2023 Decision on last resort levy true-up claims 2022 Share the page Share on Facebook Share on Twitter Share on LinkedIn Close