· The
supplier has failed to comply with a final order requiring it to
pay £673,876.62 plus interest to the Renewables Obligation
buy-out fund
· Ofgem
will take strong enforcement action against suppliers that
undermine the Renewables Obligation schemes
Ofgem has issued Gnergy Ltd with a notice of failure after
the supplier failed to comply with a final order over unpaid
Renewables Obligation payments.
Under the government’s Renewables Obligation schemes,
suppliers have to demonstrate they have sourced enough
electricity from renewable sources to meet their obligation by
presenting Renewables Obligation Certificates (ROCs) to Ofgem by
1 September.
If suppliers do not have enough ROCs to meet their
obligations, they must make up the shortfall by paying into a
buy-out fund administered by Ofgem by 31 August.
If payments haven’t been made by 31 August, suppliers have
a late payment window until 31 October to meet their obligation,
inclusive of interest charged during this period.
Ofgem issued Gnergy Ltd with a final order on 29 October
2019, requiring the supplier to make an outstanding payment of
£673,876.62 plus interest by 31 October 2019 to comply with the
Renewables Obligation schemes.
Gnergy Ltd was unable to give Ofgem any assurance it would
meet its obligation. It failed to make any payments by the
deadline and has not paid the outstanding amount since. Ofgem is
now taking further enforcement action by starting the process
that may result in the revocation of the supplier’s
licence.
Notes to editors
· For
more information, see Gnergy Ltd’s
notice of failure to comply with a final
order.
· The Renewables
Obligation schemes are government schemes
to support large-scale renewable electricity projects in the UK.
They place an obligation on UK electricity suppliers to source an
increasing proportion of the electricity they supply from
renewable sources. Ofgem administers the schemes on behalf of
government.
· ROCs
are certificates issued to operators of accredited renewable
generating stations for the eligible renewable electricity they
generate. Operators can trade ROCs with other parties. ROCs are
ultimately used by suppliers to demonstrate that they have met
their obligations.
· Mutualisation has been
triggered for the Renewables Obligation
scheme due to the threshold for the shortfall having been met.
This means that suppliers who have complied, in whole or in part,
with their obligations will be required to make up the
shortfall.
