What Is a Supplier of Last Resort?

The Supplier of Last Resort

The Supplier of Last Resort is a company that supplies electricity and gas to consumers. This regulation applies to electricity and gas companies in the EU. In cases where a Supplier has its Supply Licence revoked, the appointed supplier takes over the customer accounts of all its customers and the premises of one or more customers. If a Supplier fails to supply these services, the deemed contract is set up.

The new provider

is free to charge its customers on the day of the Last Resort Supply Direction. However, the new provider must honor any credit balances from the failed supplier. This is an important consideration for any customer, as the switching process can be complex. In addition, there are exit fees if the customer switches away from a fixed tariff. As such, it is advisable to seek specialist advice when deciding whether to choose a Supplier of Last Resort.

It is worth considering the impact of the new regulations

on electricity and gas consumers. There are many benefits and drawbacks to switching to a Solr. It is not cheap compared to traditional tariffs, but it is much cheaper than the previous system. The costs of electricity and gas are the same or higher than before, according to the ACER/CEER report. Therefore, it is essential to compare the prices of the two suppliers to get the best deal.

The new supplier can charge its customers

on the date of Last Resort Supply Direction, assuming the previous provider has honored its credit balances. However, the new provider must be able to repay any credit balances it had received from the failed supplier. It is important to assess the commercial attractiveness of taking over the customers. When the customer is unhappy with a supplier, it is always best to switch providers.

In the event of a supplier’s failure

customers can switch to a supplier of last resort. A supplier of last resort may offer a new fixed tariff, but it can be difficult to find one that offers the same price. A fixed tariff is a great option for many customers, but the cost of switching to a Solr isn’t cheap. It can be expensive and impose exit fees, but it can be worth it to avoid them.

The number of consumers supplied by a supplier of last resort

depends on the size of the jurisdiction. Those who receive electricity are the ones that pay a fixed amount to their supplier of last resort. The cost of these products can range from a few cents to a few dollars per kilowatt. The numbers are based on the yearly average for the whole of Europe. The EU has 1.7 million gas household consumers, which is about 23% of its total household customers.

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