Ofgem has approved license modifications which will allow the costs of Last Resort Supply Payments (LRSPs) to be financed by third parties and spread out over a longer period. The plans were initially announced in a consultation published at the end of 2021 in which Ofgem explored ways to reduce the impact of multiple LRSPs on energy bills following last year’s numerous supplier failures.
Ofgem approves third-party financing for SoLR costs
