Ofgem orders Nabuh Energy to pay £872,200.62 plus interest in Renewable Obligations
Nabuh Energy has been issued with a provisional order by Ofgem, compelling the supplier to pay £872,200.62 plus interest in Renewables Obligations today (31 October 2019).
Under the government’s Renewables Obligation schemes, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to Ofgem by 1 September.
If suppliers do not have enough ROCs to meet their obligation, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
Nabuh Energy failed to pay into the buy-out fund or present the required number of ROCs by the 31 August and 1 September 2019 deadlines.
Nabuh Energy previously gave assurances to Ofgem that it would meet its Renewables Obligations by 31 October 2019, but has since indicated it will not be in the position to make payment by the deadline.
Nabuh Energy is required to make the necessary payment immediately. If it does not, Ofgem will take further action to enforce payment, which may ultimately lead to the revocation of its licence.
Earlier this week, Ofgem issued a final order compelling Gnergy Ltd to make the outstanding payment of £673,876.62 plus interest to comply with the Renewables Obligation schemes by 31 October 2019.
Notes to editors
- For more information, see Nabuh: provisional order.
- The issuing of a provisional order does not imply that Ofgem has found conclusive evidence of a breach at this stage.
- The Renewables Obligation schemes are government schemes 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.
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