Ofgem is consulting on issuing final orders to five suppliers who collectively owe over £7 million in late Renewables Obligations (RO) payments.
Suppliers in Britain must demonstrate that they have sourced enough electricity from renewables by presenting Renewables Obligation Certificates (ROCs) by 1 September. If they do not have enough ROCS they must make up the short-fall by paying into the buy-out fund by 31 August.
Late payments to Ofgem, with all interest accrued, can be made up to 31 October. The regulator engages with suppliers to seek assurances that they will be able to meet this final deadline.
However, five suppliers – Ampoweruk, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy – have since "failed to provide adequate assurances" that they will make the payment by the late payment deadline, the regulator said.
AMPower UK was one of three suppliers to be expelled from Elexon’s Balancing and Settlement Code (BSC), along with Delta Gas And Power and Avro Energy – which has subsequently gone bust, and its customers taken on by Octopus Energy.
Whoop Energy and Colorado Energy were two of five to be issued with provisional orders by Ofgem for failing to pay into the feed-in tariff (FiT) scheme in September.
In August, Ofgem announced it was consulting on how to better address supplier payment default under the RO scheme, following an increasing number of electricity supplier failures in recent years. In 2020, 10 suppliers missed the late payment deadline for example, with final orders later given to three suppliers who failed to make their payments.
More suppliers have failed this year as well, with seven shuttering in September alone amidst record high wholesale energy process. This includes ENSTROGA, Igloo Energy, Symbio Energy, Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy
Ofgem will now confirm the final orders later in October, compelling the five suppliers to pay into the buy-out fund by 31 October 2021. If they fail to do so, the regulator could start the process of revoking their supply licences.