Tim Dixon shared his thoughts on the recent announcement by Ofgem on RO Mutualisation. In September, we commented that the threshold was once again being neared. Suggesting there is a potential shortfall in the RO buy-out fund of approximately half of the £16.94 million mutualisation threshold at the time.
Unfortunately, this means that other suppliers will be picking up the costs of exited rivals across 2021 and 2022, which will ultimately be passed on to the consumers’ bill
While Ofgem will not confirm the total shortfall until early December, it seems unlikely that we will see a shortfall as large as the levels seen in 2017-18 and 2018-19. But the legacy of any defaulted payments will endure.Tim Dixon, Wholesale, Team Lead