Who is responsible for paying the credit balance of failed suppliers?

oliverbrown

It was always my understanding that the supplier which takes on customers of a failed supplier must refund any credit balance. However, the quote below from an Octopus page  ( https://octopus.energy/avro/ ) suggests that some of the credit may fall to the administrators to refund. Is there any precedent for this in a prior SoLR process?

If you were midway through your switch to Avro when they went into administration (before they started supplying you power but after you’d already had a payment taken). Ofgem are currently investigating accounts like this to decide whether we’re allowed to pay you back your credit, or if it should fall to Avro’s administrators.

QrizB

The exact details of who pays what are part of the negotiations when the SoLR is appointed. Possibly this class of customer fell through the cracks when Octopus and Ofgem agreed terms.

It shouldn't make any difference provided (in this case) the rump of Avro still has sufficient assets to reimburse these customers.

I'm not aware of a previous case quite like this.

oliverbrown

QrizB said:

It shouldn't make any difference provided (in this case) the rump of Avro still has sufficient assets to reimburse these customers.

Seems unlikely that this would be the case though.