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Ofgem orders Solarplicity to pay Feed-in Tariff generators

Solarplicity has been issued with a provisional order by Ofgem to pay outstanding money owed to Feed-in Tariff (FIT) generators.

The FIT scheme is a government programme designed to promote the uptake of renewable and low-carbon electricity generation technologies.

The scheme requires participating licensed electricity suppliers to make payments on both generation and export from eligible installations.

Ofgem understands that Solarplicity failed to pay a number of FIT generators despite receiving FIT levelisation payments which should allow them to do so.

FIT generators are likely to suffer from financial harm as a result of this and the non-payments could undermine the integrity of the FIT scheme itself. 

As part of the provisional order, Solarplicity must:

  • Pay outstanding money owed to FIT generators by 16 May 2019
  • Make all future FIT payments that become due to FIT generators, by the relevant due dates
  • Not give preference to pay any FIT generator connected in any way to Solarplicity
  • Report back to Ofgem on the progress of the actions set out in the provisional order.

The provisional order will remain in place for up to three months, unless it is confirmed. 

Anthony Pygram, director of conduct and enforcement, recently said:

“Not paying FIT generators will impact their finances and affect their viability, which is why we are taking swift action to ensure that Solarplicity makes the payments due.

“Suppliers must comply with their obligations and if they do not, ultimately we can take steps to revoke their licence.”

Ofgem is currently consulting on confirming a provisional order issued to Solarplicity in February 2019, ordering the supplier to make customer service improvements.

Notes to editors

  • The issuing of a provisional order does not imply that Ofgem has found conclusive evidence of a breach at this stage.
  • Ofgem is aware that a number of FIT Generators connected to Solarplicity, either through its corporate ownership or directorships, have registered as FIT Generators with Solarplicity.
  • FIT Licensees are energy suppliers who process applications submitted for micro-generator installations and make FIT payments to generators, in respect of eligible installations. Mandatory FIT licensees are those that have at least 250,000 domestic customers. Voluntary FIT licensees are those that have less than 250,000 domestic electricity customers but elect to register and make FIT payments to certain eligible generators. Solarplicity is a voluntary FIT licensee. Both Mandatory and Voluntary FIT Licensees are obligated to make FIT payments to certain eligible generators.
  • For more information, see Solarplicity: provisional order. If Solarplicity fails to comply with the requirements of the provisional order, Ofgem may confirm the provisional order, and ultimately could revoke its licence.
  • Ofgem is currently consulting on confirming a provisional order issued to Solarplicity, ordering the supplier to make customer service improvements.

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Channel website: https://www.ofgem.gov.uk/

Original article link: https://www.ofgem.gov.uk/publications-and-updates/ofgem-orders-solarplicity-pay-feed-tariff-generators

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