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Ofgem has announced it is minded to allow SSE to claim a last resort supply payment (LRSP) of up to £711,000 for costs incurred when it took on the customers of failed supplier Brilliant Energy.
SSE, which was recently acquired by Ovo Energy, took on the 17,000 customers of Brilliant and white label Northumbria Energy as supplier of last resort (SoLR) in March 2019.
The energy regulator announced today (6 February) that the supplier made an £825,000 claim last August for the cost of credit balances and other costs incurred as SoLR, such as for IT and administration.
SSE’s claim included £114,000 for costs in relation to “blocked” customers who switched to an alternative supplier before the company could bill them. Ofgem says its initial view is that this risk should have been priced into its bid.
The company has also contributed £651,000 to offset the claim.
Both Ovo and SSE are still constituted as two separate companies and the payment will still go to SSE if given final approval.
Ofgem’s preliminary decision is now up for consultation among industry stakeholders. A final decision on the matter is expected in March.
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