Supplier of Last Resort (SoLR)

What it is

Supplier of Last Resort (SoLR) is a power Ofgem uses so that customers of a failed gas or electricity supplier keep their supply. After revoking the failed supplier's licence, Ofgem can direct another licensed supplier to take on its customers. Ofgem prefers a trade sale and prefers suppliers that volunteer.

Where you will see it

You will get a notice from the new supplier. Ofgem's guidance says the SoLR must notify customers and take reasonable steps to get meter readings so bills are accurate. Ofgem says supply continues throughout, so your lights and heating should stay on. For a fuller walk-through see what happens if your business energy supplier goes bust.

What the guidance says about terms

• You are supplied on a deemed contract that may only reflect reasonable supply costs plus a reasonable profit.
• Ofgem's recent advice to customers of a failed supplier is to wait until the new supplier contacts you, then either agree one of its deals or move to another supplier without exit fees.
• Ofgem says domestic credit balances are protected. Its notices do not give the same promise for business customers, so a business credit balance may have to be claimed through the failed supplier's administration.

Why it matters

You should not just sit on the deemed rate. Compare options and move onto a proper contract. Keep your own meter readings and records of any credit balance and prepayments in case you need to claim.

Example

Suppose your supplier fails when you are £600 in credit. Unlike a household, you cannot assume the new supplier will honour that amount, so look out for the notice and any claims process, and keep your statements.

Related terms

See out-of-contract rate, getting a credit balance refund and what if my supplier goes bust.