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Ofgem proposes final order to URE Energy for non-payment of Renewable Obligation

Ofgem is consulting on issuing URE Energy with a final order for being in breach of the Renewables Obligation Order 2015. 

URE Energy failed to meet its Renewables Obligation by not paying into the buy-out fund by 1 September 2018 or alternatively into the late payment fund under this statutory regime. 

Under the government’s Renewables Obligation schemes, suppliers, such as URE, who do not source the required proportion of electricity from renewable sources have to pay into a buy-out fund administered by Ofgem.

Ofgem previously gave notice to URE Energy to deliver all outstanding Renewable Obligation payments by 31 March 2019 through monthly instalments. URE Energy has failed to make any payments since. 

The proposed final order requires that URE Energy must pay £209,013.87 including interest by 31 March 2019.

If URE Energy fails to comply with a final order, once issued, Ofgem can use its powers to take further enforcement action against the company.

Notes to editors

  • The final order will be consulted on for 21 days before it may be issued to URE Energy.
  • In November 2018, Ofgem gave notice to URE Energy to deliver all outstanding payments through monthly instalments by 31 March 2019. 
  • URE Energy has been in contravention of article 7 of the Renewable Obligation Orders, following its failure to meet the 1 September deadline and the 31 October 2018 late payment deadline. 
  • The Renewables Obligation scheme is a government scheme to support large-scale renewable electricity projects in the UK. It places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.  Ofgem administers the scheme on behalf of government. More information is here: https://www.ofgem.gov.uk/environmental-programmes/ro 

Further information

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

Original article link: https://www.ofgem.gov.uk/publications-and-updates/ofgem-proposes-final-order-ure-energy-non-payment-renewable-obligation

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