Ofgem is to revoke URE Energy’s licence to supply electricity
after the supplier failed to meets its Renewables Obligation for
2017-2018.
URE Energy failed to meet its Renewables Obligation by not paying
into the buy-out fund by 31 August 2018, or presenting Renewables
Obligation Certificates by 1 September 2018, or by making a late
payment by 31 October 2018.
Ofgem previously gave notice to
URE Energy and Eversmart Energy to deliver all
outstanding Renewables Obligation payments by 31 March 2019
through monthly instalments. URE Energy failed to make any
payments and was issued with a final order to make the payments.
URE Energy failed to comply with the final order, which required
a payment of £209,013.78. Subsequently Ofgem is revoking its
licence to supply electricity.
Under the government’s Renewables Obligation scheme, suppliers,
such as URE, who do not source the required proportion of
electricity from renewable sources have to pay into a buy-out
fund administered by Ofgem.
For 2018-2019, suppliers have until 31 August 2019 to meet their
obligation or can pay the amount owed plus interest within the
late payment window until 31 October 2019.
If suppliers fail to meet their obligation, Ofgem can take
action.
Last year, Ofgem opened investigations into Economy Energy and
Spark Energy over their non-payment. Both have since exited the
market.
Eversmart Energy paid what it owed after Ofgem gave the supplier
notice to make its payment before 31 March 2019.
Notes to editors
- · Ofgem has
also published a notice of revocation URE’s gas supply licence on
the grounds it has not commenced supply within 12 months as
specified in its licence.
- · Both notices
will take effect as of 14 September 2019.
- · In February 2019,
Ofgem consulted on a final order to URE for its non-payment of
its Renewables Obligation. The order was issued in March
2019.
- · In November
2018, Ofgem gave notice to URE Energy to deliver all outstanding
payments through monthly instalments by 31 March 2019.
- · URE Energy
has been in contravention of article 7 of the Renewable
Obligation Orders, following its failure to meet the 31 August
2018 deadline and the 31 October 2018 late payment
deadline.
- · The
Renewables Obligation scheme is a government scheme to support
large-scale renewable electricity projects in the UK. It places
an obligation on UK electricity suppliers to source an increasing
proportion of the electricity they supply from renewable sources.
Ofgem administers the scheme on behalf of government. More
information is here: https://www.ofgem.gov.uk/environmental-programmes/ro
