Analysis by Cornwall Insight shows that 1.7% of customers in the retail energy market have been with suppliers subject to the Supplier of Last Resort mechanism (SoLR) process.
Between 2020 and 2019, 887,000 domestic customers were supplied by a company that exited the market via SoLR, and in 2021 alone, we have seen 410,000 customers served by a supplier that exited through SoLR mechanism (1.5% of the market).
Naomi Potter, Analyst at Cornwall Insight, said:
“The first half of 2021 has already seen 1.5% of customers in the domestic retail market being served by suppliers subject to the SoLR process, almost as much as was seen in the whole of 2019 and 2020 put together.
“This figure is largely the result of Green Network Energy’s exit at the end of January. EDF Energy was appointed SoLR for the supplier’s 360,000 customers making this the largest SoLR exit since the mechanism was first introduced.
“The regulator has responded to the challenges around market exits with the introduction of tougher entry tests for suppliers in June 2019, followed by the supplier licensing review changes which came into effect in early 2021.
“However, this is unlikely to change the situation in the market immediately, and looking forward, rising wholesale prices and ongoing COVID-19 related impacts suggest a difficult year ahead for suppliers, with further SoLR exits very much in scope.”