Ofgem has issued two energy suppliers with final orders and five suppliers with provisional orders over a total of £17.9 million of outstanding Renewables Obligation (RO) payments.
Issuing the orders on Friday (29 October), the suppliers had until Sunday (31 October) to make the necessary payments.
It follows Ofgem consulting on issuing final orders for Ampower, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy for unpaid RO payments.
However, Goto Energy and Colorado Energy have since ceased to trade and so are not being issued final orders, while Home Energy Trading has paid its obligation in full. As such, just Ampower and Whoop Energy have been issued the final orders.
The five suppliers to be issued provisional orders are Delta Gas and Power, Entice Energy, MA Energy, Neon Reef and Together Energy, having all failed to pay into the buy-out fund or present the required number of Renewables Obligation Certificates (ROCs) by the initial deadlines of 31 August and 1 September 2021.
Ampower owes £3,590,236.65, Whoop Energy owes £56,306.25, Delta Gas and Power owes £381,030.65, Entice Energy owes £173,923.75, MA Energy owes £941,835.25, Neon Reef owes £349,148.80 and Together Energy owes £12,402,390.00.
This year has seen a significant number of suppliers shutter, with the high gas prices creating a challenging environment. This includes ENSTROGA, Igloo Energy, Symbio Energy, Avro Energy, Green Supplier Limited, People’s Energy, Utility Point, PfP Energy and MoneyPlus Energy.
Meanwhile, Simply Your Energy, Maxen Power Supply and Omni Energy are to be expelled from the Balancing and Settlement Code after failing to sufficiently reduce their credit cover percentage over a period of two working days.
In an open letter published last week, Ofgem outlined its plans to take an enhanced approach to monitoring, compliance and enforcement of licence conditions to ensure suppliers pursue a sustainable business model.
It is also to consult on the price cap methodology to ensure that it appropriately reflects the costs, risks and uncertainties facing suppliers.