Ofgem orders five suppliers to make payments into Government renewables scheme

22 Sep 2021 02:16 PM

Ofgem is issuing suppliers Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy with provisional orders, compelling them to pay around £765,000 in total for a government environmental scheme.

The Feed In Tariff (FIT) scheme, which is administered by Ofgem, provides payments to owners of small-scale renewable energy generators, and is paid for by suppliers.

Any supplier that fails to pay its Year 11 FIT levelisation obligation by the deadline of 17 September 2021 is in breach of the rules of its supply licence.

The five suppliers each failed to make their payments by the due date. Colorado Energy failed to pay £261,406.12, Igloo failed to pay £316,582.44, Neon Reef Limited failed to pay £37,350.76, Symbio Energy failed to pay £146,238.66 and Whoop Energy limited failed to pay £3,780.22. This will delay the distribution of this money to generators and other suppliers.

If the suppliers fail to comply with the order made against them, Ofgem may take further enforcement action and they could end up having their licences revoked or facing a financial penalty.

Notes to editors

• More details on the provisional orders for Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy.
• The Feed-in Tariffs scheme is a government programme designed to promote the uptake of smaller scale renewable and low-carbon electricity generation. It requires participating electricity suppliers to make payments on both generation and export from eligible installations. Ofgem administers the scheme on behalf of government.
• The FIT levelisation process is the mechanism by which the cost of the FIT scheme is apportioned across Licensed Electricity Suppliers. The cost is apportioned based on each supplier's share of the Great Britain electricity market, whilst taking into account any payments they have made to FIT generators.
• SLC 33 stipulates that all licensed electricity suppliers that have supplied electricity in Great Britain, within the relevant FIT year or quarter are obligated to participate in the FIT levelisation process. They have to declare the amount of electricity they have supplied and make a financial contribution towards the scheme in proportion to this.
• Provisional and Final Orders may be made by the Authority to secure compliance with regulatory obligations. A provisional order usually takes effect immediately (for a maximum of three months, unless confirmed) while a final order is subject to a three-week consultation period. The Authority can further enforce a provisional or final order by way of a High Court injunction, or (in some circumstances) by revoking the supplier's licence.