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An energy retailer has been accused by Ofgem of deliberately failing to meet its Renewables Obligation (RO) deadline and is facing a £100,000 fine as a result.
Delta Gas and Power, a non-domestic supplier which serves 1,690 customers, failed to pay more than £530,000 plus interest by the RO late payment deadline of 31 October last year.
This was despite multiple reminders, a final order being made, and accruing late payment interest. The supplier eventually paid a total of almost £537,000 in late November.
“In this case, Ofgem considers Delta’s actions to be deliberate in that Delta knowingly failed to meet its obligation on time,” Ofgem said in a statement.
The regulator has therefore issued a notice of proposal to fine the supplier £100,000, to be reduced to £70,000 if Delta agrees to settle.
Ofgem said Delta only paid after “extensive compliance engagement and formal enforcement action” by the regulator, noting that the company’s behaviour took up “significant” resources in the context of difficult market conditions.
This is the second time Delta has been subject to enforcement concerning its RO payments. Ofgem issued the supplier with a provisional order in respect of its 2020/21 obligation.
Cathryn Scott, director of enforcement and emerging issues at Ofgem, said: “It is not acceptable for suppliers to delay meeting their obligations until enforcement action is taken by Ofgem. Compliance and enforcement engagement is a resource and time intensive activity, and we take a very dim view of any repeat offenders.
“Schemes like the Renewables Obligation provide vital support to renewable electricity generators and are crucial to building a green energy system, helping Britain hit the government’s net zero carbon emissions targets and shoring up our homegrown energy security.
“Suppliers that do not make payments on time undermine the integrity of these schemes, can make unfair financial gains, and could ultimately leave consumers and other suppliers to pick up the tab.
“This proposed fine sends out a strong message that late payment of these obligations will have consequences.”
Utility Week contacted Delta Gas and Power for comment but received no response at the time of publication.
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