Not all things last forever. The same concept applies to the services of your business energy. It may be due to them moving to another location, or it may be due to bankruptcy. Once that happens, a supplier of last resort or SoLR comes into play. But what is a supplier of last resort? Will it affect my business energy supplier? How about my rates? We will answer these questions and find out so much more in the following segment.
A supplier of last resort or SoLR is an energy-providing service. You will only get access to it once your current energy provider goes out of service. It can also be due to the company running out of supply permanently. What happens is another agency – Ofgem – will notify you of the incoming change. Once that happens, your energy supply will move from your current provider to an appointed supplier of last resort. The new energy-providing company will take care of your business energy needs to keep things running. You can never tell when your current energy company will run out of supply. It will all be up to Ofgem to let you know.
So what is Ofgem? Ofgem stands for Office of Gas and Electricity Markets. It is an agency that works as a non-ministerial entity, involved in energy matters around the country. The agency’s primary role is to make sure energy keeps on pumping for the country’s thousands of businesses and growing industries. It is the agency’s responsibility to oversee and manage price control and energy distribution.
Let us head back to a supplier of last resort. Once Ofgem designates a supplier of last resort for your company, you do not have to worry about your supply. The new supplier will make sure your business receives enough gas, electricity, and water. They will act to preserve and develop your growing business. However, the same might not apply to rates.
Speaking of rates, you will be a new contract as you transition to a supplier of last resort. What happens is that you will receive a deemed contract. That means you only have a temporary agreement with the current SoLR. The company will try to keep up with the supply rate and prices of your previous contract. However, you should not be too optimistic about this concept. Not all SoLR companies are willing to make up for what their customers lost from the previous suppliers. Only a handful of companies will try to match your previous supply and charges. You will be lucky to land your business with such an organization.
But the neat thing about being under a supplier of last resort is that you have the option to switch to a new one. Let us say you are not satisfied with your current SoLR services and rates. It may be that you are paying a lot more but not receiving enough energy for your business. If that is the case, you have the option to choose and transition to another. What’s more, is that you do not have to pay anything at all once that is the case. Ofgem is aware that your company has undergone the SoLR transition. That way, they will find out that you choose to switch energy providers. They will not charge you a dime at all. Talk about an advantage!
The bulk of the transfer lies in your new supplier. They can either take the risk of handling your energy supply to meet the previous one. Other risks a new supplier must face include the following:
- Keeping up with the rates of your previous energy company
- Loss of potential profit for their business
- Liability for another company’s accrued credit issues
- Agreement issues with the new supplier of last resort transition
You also have the option to get in touch with a utility bidder. A utility bidder is a service that allows you to look for numerous business opportunities and company deals. In addition, you do not have to worry about getting access to such services. The internet has tens of thousands of websites and pages that handle utility bidder-related services. Furthermore, a utility bidder can also help you with searching for a new supplier. That is ideal once you find out that you will be under SoLR sometime soon. You can also count on a utility bidder company or organization to look for potential services, deals, and other opportunities for your business. Why not give it a shot right now?