SoLR Levy Offset: decision
Summary
Ofgem decision on the Supplier of Last Resort Levy Offset mechanism. Companion to the September 2024 statutory consultation. Determines how the costs of SoLR appointments flow through to consumers via network charges.
Why it matters
Operative cost-allocation mechanism for SoLR costs. Routine redistributive plumbing within the supplier-failure backstop regime.
Areas affected
Memo
SoLR Levy Offset: decision | 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: SoLR Levy Offset: decision Publication type: Decision Publication date: 5 August 2025 Topic: Gas distribution Decision for: SoLR Levy Offset Statutory Consultation Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn When an energy company fails, it is essential that its customers still have an energy supplier and our Supplier of Last Resort (SoLR) safety net guarantees this. We have now introduced new rules called the ‘SoLR Levy Offset’. The SoLR Levy Offset forms part of our wider work to strengthen the financial resilience of the retail energy market and mitigate the impact of supplier failures on consumers. The SoLR Levy Offset places an obligation on suppliers to enter a deed of undertaking to pay the networks the amount of any SoLR levy claim if the supplier failed and a SoLR was appointed - helping protect consumers from costs of future supplier failures. This is recoverable through the insolvency process where the failed supplier has residual assets available to pay creditors. We are grateful for the responses from all stakeholders to our policy and statutory consultations and the helpful feedback we have received during this process. We are now confirming the changes made to the gas and electricity supply licences, and the gas transportation and electricity distribution licences, to implement the proposals. The changes take effect from 1 October 2025. Main document SoLR Levy Offset decision [PDF, 562.86KB] Subsidiary documents Electricity distribution standard licence [PDF, 122.22KB] Electricity distribution special licence [PDF, 157.98KB] Electricity supply standard licence [PDF, 157.45KB] Gas supply standard licence [PDF, 142.64KB] Gas transporter special licence [PDF, 134.97KB] Gas transporter standard licence [PDF, 172.96KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close