Ofgem has launched a coverage session on the proposed Provider of Final Resort (SoLR) Levy Offset, aiming to bolster client safety in circumstances of provider failures.
The SoLR security web ensures uninterrupted vitality provide for patrons, together with reimbursement of any credit score balances held with the failed provider.
Ofgem’s proposal seeks to mitigate the monetary affect on shoppers by shifting the legal responsibility of SoLR levy prices to the failed provider, topic to insolvency proceedings.
Tim Jarvis, Director Basic for Markets at Ofgem, mentioned: “We’ve already introduced in robust new guidelines to make suppliers extra financially secure, which incorporates requiring suppliers to have their very own capital in danger in order that they’ll higher stand up to shocks.
“If applied, these new guidelines would go additional in the direction of shielding shoppers from the affect of failures sooner or later and imply that shareholders wouldn’t be capable of see any return from an insolvency course of till the prices of holding their clients on provide had been met.”
The session is open till fifth April, with stakeholders invited to supply suggestions on the proposed measures.
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