Ofgem orders Breeze Energy to pay £486,232.06 including interest in Renewable Obligation
1 Nov 2019 10:50 AM
Breeze Energy has been issued with a provisional order by Ofgem, compelling the supplier to pay £486,232.06 including interest in Renewables Obligation
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.
Breeze 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.
Breeze Energy previously gave assurances to Ofgem that it would meet its Renewables Obligation by 31 October 2019, but has since indicated it will not be in the position to make part of the payment by the deadline.
Breeze 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.
Yesterday, Ofgem issued Nabuh Energy with a provisional order compelling the supplier to pay £872,200.62 plus interest in Renewables Obligations.
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 Breeze: 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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