Ofgem proposes confirming Solarplicity Feed-in Tariff generator payments provisional order
Ofgem is consulting on its proposal to confirm the provisional order issued to Solarplicity to pay outstanding money owed to Feed-in Tariff (FIT) generators.
In May, Ofgem imposed a provisional order requiring Solarplicity to:
- 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.
Since then, Solarplicity appears to have met the requirement to make outstanding payments by 16 May 2019.
However, it recently failed to make other FIT payments due as part of payment plans, and due to this and Ofgem’s concerns around Solarplicity’s ability to make future FIT generator payments, Ofgem is consulting on confirming the provisional order.
If confirmed, the provisional order would remain in place until Ofgem is content Solarplicity is compliant with the order.
If the supplier continues to fail to meet the requirements set out in the confirmed provisional order, Ofgem could start the process of revoking its licence to operate.
Ofgem previously imposed a provisional order on Solarplicity in February 2019 for its customer service failings, which Ofgem decided not to confirm after the supplier significantly improved its customer service arrangements in relation to complaints handling and the switching process.
However, Ofgem still has some concerns in relation to how it treats vulnerable customers and those struggling to pay their bills and will continue to actively monitor Solarplicity's performance in these areas.
Solarplicity will provide Ofgem with weekly reports on its commitments to improve its performance in these areas and has also agreed to not to take on new customers until 5 August 2019.
If Solarplicity does not improve in these areas, Ofgem reserves the right to take further enforcement action.
Notes to editors
- The confirmation of the provisional order will be consulted on for 21 days.
- 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 fewer 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.
- 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.
- For more information, see Solarplicity: provisional order. If Solarplicity fails to comply with a confirmed provisional order, Ofgem ultimately could revoke its licence.
- Solarplicity has also agreed to not to take on new customers until 5 August 2019, other than customers joining through community energy schemes which it will limit to 200 per week.
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