Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
Nabuh Energy says its outstanding renewables obligation (RO) will be paid in full on or before 8 November, after the supplier was slapped with a provisional order from Ofgem.
It added that the missed payment was “not a cause for concern” for any of its suppliers or customers, with additional funding having been arranged but a last-minute delay meaning it missed the deadline.
The Sheffield-based company, which was revealed as owing £872,200.62, blamed the number of prepayment customers it had compared to other suppliers.
In a statement, Nabuh said: “Most suppliers have a much lower proportion of prepayment customers and consequently enjoy the benefit of monthly customer direct debit payments at a fixed amount. This to a large extent regulates cashflow and ensures that customers’ payments each month are consistent throughout the year.
“Nabuh’s business differs in that customer payments during the spring and summer months are low whereas payments during the autumn and winter are much higher.”
Nabuh, which took on the customers of Snowdrop Energy last year, said it had seen “significant growth” over the past year and as a result had experienced more pressure during the Spring and Summer months.
It was anticipated that additional funding would be required to meet the RO payment before the company entered the winter months.
“Additional funding has been arranged and agreed however due to circumstances beyond the control of Nabuh, we have experienced delays which have caused a delay in the full payment of our RO obligations”, the statement added.
Nabuh says Ofgem has been made aware that the balance of any RO payments due will be paid “on or before” 8 November.
Please login or Register to leave a comment.