Recovery by gas transporters of Last Resort Supply Payments

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This open letter relates to recovery of Last Resort Supply Payment (LRSP) claims arising from failed energy retail suppliers going through the Supplier of Last Resort (SoLR) process.

We are consulting on options for the recovery of LRSP claims from domestic gas customers connected directly to Gas Distribution Networks (GDNs) and those connected via Independent Gas Transporters (IGTs).

We are consulting on three options for an interim solution and an enduring solution.

Interim option 1, our preferred interim option, is an intra-year revision to tariffs by Gas Distribution Networks (GDNs). The Supplier of Last Resort (SoLR) continue to be paid directly by GDNs.

Interim option 2 is for both GDNs and IGTs to pay money to the SoLR.

Interim option 3 is to lower 2023/24 tariffs instead of adjusting 2022/23 tariffs.

Our proposed enduring solution for network charges from 2023/24 onwards is for a new UNC mod to allow GDNs to recover an LRSP charge from all customers, rather than just their own customers, both domestic and non-domestic.

Respond name

Andrew Ryan

Respond email

Andrew.Ryan@ofgem.gov.uk

Main document

[IGT LRSP Open Letter [PDF, 129.19KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-04/2022-04-20%20IGT%20LRSP%20%20open%20letter.pdf)

Response documents

[2022-05-18 LRSP recovery by Gas Transporters - WWU response [PDF, 455.86KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20LRSP%20recovery%20by%20Gas%20Transporters%20-%20WWU%20response.pdf)

[2022-05-18 INA response to IGT LRSP open letter [PDF, 139.06KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20INA%20response%20to%20IGT%20LRSP%20open%20letter%20.pdf)

[2022-05-18 Cadent response to IGT LRSP open letter [PDF, 70.45KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20Cadent%20response%20to%20IGT%20LRSP%20open%20letter.pdf)

[2022-05-18 British Gas response to IGT LRSP open letter [PDF, 70.45KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20British%20Gas%20response%20to%20IGT%20LRSP%20open%20letter.pdf)

[2022-05-11 EAPL response to IGT LRSP open letter [PDF, 117.09KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-11%20EAPL%20response%20to%20IGT%20LRSP%20open%20letter.pdf)

[responses to April 2022 SOLR IGT recovery letter [ZIP, 2.22MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/responses%20to%20April%202022%20SOLR%20IGT%20recovery%20letter.zip)

[2022-05-18 SGN Response to IGT LRSP open letter [PDF, 276.69KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20SGN%20Response%20to%20IGT%20LRSP%20open%20letter.pdf)

[2022-05-18 NGN response to IGT LRSP open letter [PDF, 384.17KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20NGN%20response%20to%20IGT%20LRSP%20open%20letter.pdf)

[2022-05-18 LRSP recovery by GDN and IGT networks - SPERL response [PDF, 654.35KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20LRSP%20recovery%20by%20GDN%20and%20IGT%20networks%20-%20SPERL%20response.pdf)

[2022-05-18 LRSP recovery by GDN and IGT networks - Eon response [PDF, 103.11KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-06/2022-05-18%20LRSP%20recovery%20by%20GDN%20and%20IGT%20networks%20-%20Eon%20response.pdf)

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