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Ofgem has permitted Octopus Energy to recoup nearly £13.2 million of costs it incurred in acting as the supplier of last resort for the former customers of Iresa.

The grant includes more than £10.9 million to cover the credit balances Iresa owed to its 95,000 customers when the company went bust in July 2018.

Octopus Energy originally made a claim for around £13.8 million – an amount which was approved by Ofgem in a minded-to decision in December.

However, the company has since revised its claim downwards by almost £640,000, mainly due to the finalisation of previously estimated credit balances. Ofgem said there may be further revisions as more credit balances are finalised.

The money granted to Octopus Energy will be collected from energy customers through their distribution network charges for 2019/20.

Revised claim

Source: Ofgem