The presence of a significant increase in commodity costs in 2021, combined with the Default Tariff Cap limiting the revenues that suppliers can recover in the domestic market, has contributed to a number of suppliers falling into insolvency in the last 9 months. The Supplier of Last Resort (SoLR) process appoints a new supplier for customers of failed suppliers, with onboarding suppliers able to recover some costs for doing so, such as protecting customer credit balances and working capital requirements. A number of SoLR events will be recovered from consumer bills in 2022-23, with these charges fed through to consumers in their network distribution charges. In this ‘Chart of the week’, we look at how these costs will impact domestic electricity bills in the next financial year.
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