Ofgem orders seven energy firms to pay £34m over renewables commitments

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8:14am, Fri 02 Oct 2020
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The energy regulator has proposed orders for seven energy providers to pay more than £34 million owed in relation to two green energy programmes.

Ofgem is consulting on final orders to compel seven suppliers – Co-Operative Energy, Flow Energy, MA Energy, Nabuh Energy, Symbio Energy, Robin Hood Energy and Tonik Energy – to pay £33.86 million in outstanding payments needed to comply with the Renewable Obligations scheme.

Separately, the watchdog said two of the firms also owe £158,814.47 in relation to another green energy scheme.

Ofgem said the suppliers have not given it “adequate assurances” that they will make their Renewables Obligations (RO) payments by their deadline.

The Government’s RO schemes require suppliers to show they have sourced enough electricity from renewable sources to meet their own specific obligation.

Ofgem said suppliers had to present this information by September 1, with those firms which failed to meet their obligations having to make up the shortfall in meeting renewables targets by paying into a fund.

Suppliers who fail to pay in full by the original deadline must pay with interest by the end of October.

The regulator said 24 suppliers missed the original deadline, but the 17 others have now paid the amount owed or given satisfactory assurances that they will meet their commitments.

If the final orders are confirmed later this month, the seven suppliers will be compelled to pay into the fund.

Ofgem could start the process of revoking their licences to supply energy if they fail to pay.

Separately, it said Robin Hood Energy and Tonik Energy owe £158,814.47 in Feed-in Tariff (Fit) levelisation payments.

The Fit scheme provides payments to owners of small-scale renewable generators, such as solar panels on homes, and is funded through levies on suppliers.

Supplier failure to comply with these schemes and make the payments due undermines the integrity of the schemes and is unacceptable

Cathryn Scott, Ofgem’s director of enforcement and emerging issues, said: “The Renewables Obligations and Feed-in Tariff schemes provide important support for renewable generation, increasing the uptake of cleaner electricity and helping the country on its path to net-zero emissions.

“Supplier failure to comply with these schemes and make the payments due undermines the integrity of the schemes and is unacceptable.

“This enforcement action sends a strong signal that suppliers must meet their obligations.”

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