Last Resort Supply Payment claims minded-to positions 2026: EDF (Utility Point and Zog)

Details of outcome

Following the appointment of a Supplier of Last Resort (SoLR), Ofgem manages an industry process which enables the SoLR to seek to recover additional costs faced in supplying the transferred customers. This is known as a Last Resort Supply Payment (LRSP). Doing so ensures suppliers continue to come forward to act as SoLRs, and it is through this mechanism that customer credit balances are protected when a supplier fails. LRSPs are paid for by the relevant gas and electricity network operators, who then recover the cost through charges to suppliers.

We expect SoLRs to demonstrate the steps taken to minimise these costs. Ofgem decides on a case-by-case basis whether it is in consumers’ interests to grant our consent to recover costs.

In December 2021 we made temporary changes to the process for LRSP claims. The temporary process allows SoLRs that had been appointed since 1 September 2021 to submit an initial claim for immediate costs incurred, and subsequent ‘true-up’ claims for additional costs. If our assessment finds that an overpayment has been made in a previous claim, the SoLR is required to repay the excess through the same industry processes. In August 2025, we implemented licence changes to make this multi-claim process a permanent feature of the regulatory framework.

Ofgem received claims from EDF Energy Customers Limited (EDF) on 4 June 2026 in relation to acting as SoLR to customers of the former Utility Point Limited (Utility Point) and Zog Energy Limited (Zog). We published minded-to positions on these claims for consultation on 21 August 2026.

We have now published our final decisions on these claims. Our assessment was carried out against the relevant licence conditions and/or our criteria and methodology to determine that the costs are additional, directly incurred as part of the SoLR role, otherwise unrecoverable, and economic. We have also been informed of recoveries from the liquidation processes of the failed suppliers and determined that repayments to the relevant gas and electricity operators should take place.

EDF indicated that it wished to close the True-up Agreement for Utility Point and Zog. Following consultation, we consider this claim to be a final True-up Claim for the purposes of the True-up Agreement. The decision letters for this final valid claim are therefore to be considered the Notice of Termination under clause 2.2(c) of the True-up Agreement, subject to any subsequently identified recovery from the liquidation of Utility Point or Zog being returned to consumers via the levy process.

The publications include our decision and consent documents, and necessary directions to SoLRs and industry parties to enable the relevant payments to take effect.

Read the full outcome

Original consultation

Following the appointment of a Supplier of Last Resort (SoLR), Ofgem manages an industry process which enables the supplier to seek to recover additional costs they face in supplying the transferred customers. This is known as a Last Resort Supply Payment (LRSP). Doing so ensures suppliers continue to come forward to act as SoLRs, and it is through this mechanism that customer credit balances are protected when a supplier fails. LRSPs are paid for by the relevant gas and electricity network operators, who then recover the cost through charges to suppliers.  

We expect SoLRs to demonstrate steps taken to minimise costs. Ofgem decides on a case-by-case basis whether it is in consumers’ interests to grant our consent to recover costs.  

In December 2021 we made temporary changes to the process for a SoLR to make a claim for an LRSP. The temporary process allowed SoLRs that had been appointed since 1 September 2021 to submit an initial claim for immediate costs incurred, and subsequent ‘true-up’ claims for additional costs. In August 2025, we implemented licence changes to make this multi-claim process a permanent feature of the regulatory framework.  

Following our decisions in 2021, 2022, 2023, 2024 and 2025 on claims submitted by SoLRs as part of this process, we have now assessed final true-up LRSP claims made by EDF Energy Customers Limited and have published our minded-to position on each of the claims received by Ofgem. Our assessment was carried out against the relevant licence conditions and/or our criteria and methodology to determine that the costs are additional, directly incurred as part of the SoLR role, otherwise unrecoverable, and economic.