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Independent Networks Association

Information to Shippers: Last Resort Supply Payments from Independent Gas Transporter (IGT) connected customers

Consent issued from Ofgem on 11 March 2022 

Ofgem has issued a consent to Independent Gas Transporters (IGTs) to change their charges to ensure that IGT connected customers contribute to Last Resort Supply Payments (LRSP) in the 2022/23 charge year.

Ofgem’s consent can be found here: https://www.ofgem.gov.uk/publications/recovery-igts-last-resort-supply-payment-lrsp-claims-arising-failed-suppliers

IGTs are conscious that this is a late change to shipper’s expected charging and are using each channel open to them to alert shippers to this direction.

IGTs will start to levy this charge on a monthly basis from 1 April 2022. The shipper’s first invoice will be sent to them in May and the charges will be recouped over 12 months.

All IGTs will be specifically flagging these costs as ‘LRSP’ in separate invoices and will be using an identical format so that shippers can easily identify that this charge relates to Ofgem’s LRSP direction. These charges will be levied under and therefore subject to the IGT UNC payment terms. This approach to LRSP charging will be an interim measure until an enduring solution can be developed under the UNC.

For any queries on an individual invoice please contact the relevant issuing IGT.

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