(Bloomberg) -- The UK’s largest electricity distribution business said a hit of £280 million from energy companies failing will be passed on to customers. 

UK Power Networks Ltd has received the claims under the so-called supplier of last resort scheme -- a regulatory plan that ensures domestic supply isn’t interrupted when suppliers fail.

The value of such claims through to March 31 this year was approximately £280 million, according to its annual accounts. It has agreed with regulator Ofgem that the majority will be payable and recovered from customers through higher tariffs. 

The soaring volatility in energy markets that began in late 2021 has seen a wave of supplier failures in the UK. The news was first reported by the Times of London. 

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