|Supplier of last resort (SoLR)|
|European Union Electricity Market Glossary|
Electricity suppliers of last resort (SoLR) exist in the European Union Internal Electricity Market in all countries apart from France (ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Gas Markets in 2015, Consumer Protection and Empowerment, November 2016, p. 7).
There is no gas supplier of last resort in Bulgaria, Finland, France, Greece or Slovenia (no gas is available to final household consumers in Cyprus, Malta or Norway).
In most jurisdictions, supply of last resort is considered a precaution for supplier and/ or Distribution System Operator (DSO) failure, that is, in cases when a current supplier to the final household consumer goes bankrupt and is no longer able to perform its function, or the licenses of a current supplier or DSO are revoked.
However, suppliers of last resort often protect consumers with payment diffculties or inactive consumers beyond the business failures of energy service companies.
Protection in the case of payment diffculties refers to situations in which:
- final household consumer is dropped by its current supplier because of non-payment.
Inactive consumers enjoy protection through a supply of last resort mechanism if:
ACER and CEER in the Presentation of 24 October 2017 - The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights ACER/CEER, The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights recommended that (p. 43):
- suppliers of last resort or default suppliers should not lead to consumers remaining inactive on a permanent basis,
- SoLR mechanism should not be used as a means to keep regulated prices in place.
Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD)
ACER/CEER, The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights ACER/CEER, The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights
|Last Updated on Thursday, 09 November 2017 11:54|