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A business energy supplier paid more than £384,000 in Renewables Obligation (RO) payments after the late payment deadline, Ofgem has revealed.
More than £58 million from the 2020-21 RO late payment fund was redistributed on 3 December 2021 to suppliers who presented RO certificates (ROCs) by 1 September.
Retailers received a total of £4.42 per ROC presented after the redistribution of the buy-out and late payment funds.
However, following the 31 October late payment deadline, an additional sum of £384,278.28 was recovered in payments from November last year to February 2022 from one supplier who failed to discharge its obligation by the deadline.
Ofgem has since confirmed to Utility Week that the supplier was London-based Delta Gas and Power.
Delta’s payment was redistributed earlier this month to suppliers in proportion to the total mutualisation payments they are responsible for making in respect of the 2020-21 period.
Last year a total of 28 suppliers, the vast majority of which had exited the market, left more than £218 million in RO payments to be picked up by the rest of the industry.
The figure constituted the largest ever amount to be mutualised under the scheme. It is more than 6 times larger than the 2019/20 period and more than double the previous record amount of £97.5 million set in 2018/19.
Recently the Department for Business, Energy and Industrial Strategy (BEIS) rejected proposals for more frequent settlement of the RO scheme.
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