Ofgem has issued a Final Order to supplier GnERGY, after the company failed to pay its outstanding payments for its Renewables Obligations (RO).
GnERGY was one of four companies that didn’t pay its fees by the 31 August deadline, along with Delta Gas and Power, Robin Hood Energy and Toto Energy. All four companies were given until 31 October to make the payments in full or face losing their licenses.
GnERGY owes £673,876.62 plus interest, after it failed to produce Renewables Obligation Certificates (ROCs) to Ofgem, and then failed to make up the shortfall by paying into the buyout fund.
ROCs are issued to operators of accredited renewable generation stations, they can be traded, and ultimately are used by suppliers to prove that they have met their renewable generation obligations.
Mary Starks, executive director of consumers and markets at Ofgem said: “The Renewables Obligation schemes provide important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050.
“Following our intervention, we have successfully received payment from two of the four suppliers by the 31 October deadline.”
Delta Gas and Power has now paid its £91,937 plus interest, and Robin Hood Energy has paid it’s £9,435,925 plus interest in full.
Robin Hood Energy was openly critical of Ofgem’s handling of the ROC payments, as it said it had approached the regulator in advance to discuss paying in installments as other companies had in the past. Gail Scholes, Robin Hood CEO, said that the company was advised that this would be possible so long as it paid by March 2020, and was therefore surprised when Ofgem demanded payment by 31 October.
“It is frustrating that, in our view, following our proactive and open conversation with Ofgem, we now find ourselves the subject of significant media interest, with questions being asked about our fundamental ability to operate as a business,” Scholes said in her statement earlier in the month. “This is plainly incorrect.”
Toto Energy has now ceased to trade, becoming the 16th small energy company to fold in less than two years and leaving 134,000 customers in limbo. It owed £4.5 million in RO payments, which it was unable to meet. All of its customers were automatically switched to EDF Energy last Sunday.
GnERGY now has just two days in which to pay its RO shortfall in full, if it fails to do so Ofgem will publish a summary of its RO payments, including those that are late or missed, which will be addressed in line with Renewables Obligation Orders. Any shortfalls within these will trigger mutualisation if the relevant threshold of £15.4 million is met.
“If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked,” said Starks.
Current± has approached GnERGY for comment.