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.
An energy supplier has been ordered by Ofgem to pay more than £530,000 in Renewables Obligation (RO) payments by the end of Monday (31 October).
Suppliers are obliged to present their RO certificates (ROCs) or make a buyout payment by the start of September but those who miss the deadline have until 31 October to pay in full, incurring a daily interest penalty.
Mutualisation is triggered if shortfalls in the late payment fund hit the relevant thresholds of £63.7 million for England and Wales and £1.54 million for Scotland.
Last month Ofgem began consulting on issuing final orders to Delta Gas and Power, a non-domestic retailer serving almost 1,700 customers, along with domestic supplier Logicor Energy.
At the time the regulator said that Delta and Logicor owed £644,499.60 and £377,444 (excluding interest) respectively.
Ofgem confirmed on Monday that while Logicor had paid its obligation in full, Delta had failed to do so and that it was issuing the order as a result.
If Delta fails to comply with the order, Ofgem warned, it could end up with its supply licence being revoked.
Charles Hargreaves, deputy director of enforcement and emerging issues at Ofgem, said: “Today’s enforcement action serves as a reminder to suppliers to follow through on compliance with the Renewables Obligation, which ultimately supports consumers, the energy ecosystem and a wider UK 2050 Net Zero ambition.”
Meanwhile Ofgem has further confirmed that following the late payment deadline and internal verification processes it will publish a summary of suppliers’ RO payments, late payments and any payments which remain outstanding.
Please login or Register to leave a comment.