What is the Last Resort Supply Service?
The Last Resort Supply Service is activated by the territorially competent distributor in certain situations where a final customer is without a supplier while remaining connected to the network and therefore able to continue withdrawing gas.
In such cases, the gas supply is assigned to a specific supplier, selected by the Single Buyer through an auction (namely, the Last Resort Supplier LRS), which must then operate according to the regulations established by the Regulatory Authority for Energy, Networks, and the Environment (hereinafter referred to as "ARERA"), including the economic conditions to be applied.
In particular, the Last Resort Supply Service can be activated in the following situations:
- In the case of non-disconnectable supplies that find themselves without a supplier for any reason (non-disconnectable supplies refer to those that provide public services, as defined in Article 2.3, letter c of Annex A to the ARERA Resolution ARG/Gas 64/09 and subsequent amendments, "Integrated Text of retail sales activities of natural gas and gases other than natural gas distributed through urban networks," hereinafter referred to as "ITRG");
- In case of disconnectable supplies that find themselves without a supplier due to reasons beyond their control (administrative cessation for reasons other than arrears or in the event of the termination of the distribution contract between the previous supplier and the local distributor) related to residential customers, residential condominiums with consumption not exceeding 200,000 Smc per year, or other uses with consumption not exceeding 50,000 Smc per year.
The economic conditions provided for the supplier of last resort service differ in relation to the customer supplied. In general, the following prices will be applied:
- for non-disconnectable customers: the rates provided by ARERA for the gas protection service (with a retail sale quota component "QVD" equal to that defined for apartment buildings with domestic use) plus the β parameter defined in the auction phase and the additional INAUI fee for expenses related to arrears referred to in paragraph 31a.4 of the TIVG;
- for domestic customers and apartment buildings with domestic use and annual consumptions of less than 200,000 cubic metres: the rates provided by ARERA for the gas protection service plus the β parameter, starting 6 months after activation of the service;
- for all other customers: the rates provided by ARERA for the gas protection service (with a retail sale quota component "QVD" equal to that defined for apartment buildings with domestic use) plus the β parameter;
The billing of the supplier of last resort service shall be governed by the provisions laid down by ARERA in art. 31 a of the TIVG.Billings starts within three months from entry into the supplier of last resort service and continues on a monthly basis.
You can also read about Default Gas Distribution Service.