Ofgem issues three final orders for £15 million in unpaid Renewables Obligation and Feed-in Tariff payments
Ofgem has issued three suppliers with final orders compelling them to pay £15 million in outstanding payments to comply with the Renewables Obligation (RO) scheme and in Feed-in Tariff (FIT) levelisation payments by 31 October 2020.
- Three suppliers have not paid or provided adequate assurances that they will make their Renewables Obligation payments by 31 October final deadline
- Ofgem has issued the suppliers with final orders compelling them to pay £15 million in unpaid Renewables Obligation and Feed-in Tariff payments
- If suppliers fail to make the payments, Ofgem could take further enforcement action which could include revoking a supplier’s licence
The three suppliers are Nabuh Energy Limited, Robin Hood Energy Limited and Symbio Energy Limited.
The three suppliers failed to pay into the buy-out fund or present the required number of Renewables Obligation Certificates (ROCs) by the initial deadlines of 31 August and 1 September 2020. They now have until the late payment deadline of 31 October to make the outstanding payments, plus interest.
Robin Hood Energy Limited also failed to pay its FIT levelisation payment.
Earlier this month Ofgem consulted on issuing the final orders, as well as four more final orders for Tonik Energy, Co-Operative Energy, Flow Energy and MA Energy for unpaid Renewables Obligation and Feed-in Tariff payments.
Tonik Energy has since ceased to trade, Co-operative Energy and Flow Energy have provided Ofgem with sufficient assurances that they will pay by the deadline and MA Energy has since paid its obligation in full.
Ofgem has also engaged with other suppliers which missed the 31 August and 1 September deadlines but which have since provided satisfactory assurances that they will be in a position to make the necessary payments by the late payment deadline.
If any supplier fails to meet the late payment deadline, Ofgem is ready to take the appropriate enforcement action against them, which could result in their licence being revoked.
Cathryn Scott, Ofgem’s Director of Enforcement and Emerging Issues, recently said:
“The Renewables Obligation and Feed-in Tariff schemes provide vital support to renewable electricity generators and play an important role in Great Britain’s journey to a greener, fairer, energy system.
“This enforcement action shows that we will take robust action if suppliers undermine such schemes by failing to meet their obligations, which could lead to them having their licence revoked.”
Following the late payment deadline of October 31, Ofgem will publish a summary of suppliers’ Renewables Obligation payments, late payments and any payments which remain outstanding.
The three suppliers and outstanding amounts are:
|Total RO/ROS owed (excluding interest)||FIT Year 10 Annual levelisation owed|
|Nabuh Energy Ltd||£2,683,631.70|
|Robin Hood Energy Limited||£12,057,879.42||£33,945.51|
|Symbio Energy Limited||£506,308|
Notes to Editors
- The final orders have been issued to the three suppliers.
- Ofgem opened the consultations on 2 October 2020.
- The three suppliers are, in Ofgem’s view, likely to contravene article 7 of the Renewables Obligation Orders, following their failure to meet the 31 August and 1 September 2020 deadlines and possibly the 31 October 2020 late payment deadline, as well as contravening SLC 33 for non-payment of FITs.
- Symbio Energy Limited has sought to challenge the final order in court. On 28 October, Mr Justice Knowles refused Symbio’s request for urgent injunctive relief. Ofgem considers that the enforcement action it is taking is reasonable, proportionate and lawful, and will defend that position vigorously.
- The Renewables Obligation schemes are government schemes in Great Britain and Northern Ireland to support large-scale renewable electricity projects in the UK. They place an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources. Ofgem administers the schemes on behalf of government.
- ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligations.
- Shortfalls in the late payment fund for the Renewables Obligation scheme will trigger mutualisation if the relevant threshold (£15.4 million for England and Wales, and £1.54 million for Scotland) is met. This means that suppliers who have complied with their obligations will be required to make up the shortfall.
- The Feed-in Tariffs scheme is a government programme designed to promote the uptake of smaller scale renewable and low-carbon electricity generation. It requires participating electricity suppliers to make payments on both generation and export from eligible installations. Ofgem administers the scheme on behalf of government.
- The FIT levelisation process is the mechanism by which the cost of the FIT scheme is apportioned across Licensed Electricity Suppliers. The cost is apportioned based on each supplier's share of the Great Britain electricity market, whilst taking into account any payments they have made to FIT generators.
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