British Gas appointed as SoLR following double failure

British Gas has been appointed by Ofgem to take on the customers of failed suppliers Neon Reef and Social Energy Supply.

The latest announcement means the retailer has now acquired more than 500,000 customers via the supplier of last resort (SoLR) process this year alone.

The two companies, which leave behind a combined total of approximately 35,500 domestic customers, ceased trading last week and took the total number of exits via the SoLR process so far this year to 24.

In a statement Centrica’s chief executive Chris O’Shea said: “The actions we have taken over the past couple of years mean Centrica is in a robust financial position, and as a responsible energy supplier built on a sustainable model we are well hedged for the winter.

“We have now taken on over 500,000 customers of failed suppliers through Ofgem’s supplier of last resort process this year and we’ll continue to do what we can to help stabilise and support the sector and work as part of wider industry efforts to drive regulatory reforms which are urgently required.”

Following its failure Social Energy announced it was restructuring its UK business to continue solar battery sales and optimisation.

The company, launched in 2019, has more than 7,100 connected solar battery customers and acted as the energy supplier for 5,600 of them.

Social said that it plans to transition all of its supply company employees across to other parts of the group. As well as operating in the UK, the company also has a presence in Australia.

Richard Smith, the company’s chief executive, said: “It’s an extremely difficult time in the UK energy market right now, where we’re seeing many of our innovative peers forced to leave the sector altogether, with an unprecedented inability to sell energy at a profit.

“We are very grateful to be in a position whereby our business can continue to successfully operate without an energy supply business and to keep offering savings to customers new and old.”

The latest SoLR appointment follows the announcement by large retailer Bulb that it is to become the first supplier to enter the special administration regime (SAR).

Bulb, which has 1.7 million customers, had previously been seeking new investment opportunities before it took the decision to enter the SAR.

Elexon

Elsewhere in the sector Elexon has announced a further reduction to the credit assessment price (CAP).

Following a short consultation, the code administrator has revealed that from 3 December the CAP value will decrease to £230/MWh, from £240/MWh.

During the consultation two Balancing and Settlement Code (BSC) parties disagreed with the proposed value.

So as not to hold up the implementation of the reduced value, Elexon will consider these responses in more detail at its next Credit Committee meeting which is scheduled to convene next week.