Ofgem issues Gnergy with final payment warning
Ofgem has issued Gnergy with a final order for their unpaid Renewables Obligations bill, raising the possibility that the supplier could have its license revoked if they did not comply by the payment deadline.
The watchdog said that the company, which was one of four suppliers who missed the original deadline for payments, had not yet provided adequate assurances that it would pay by 31 October.
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Gnergy must pay £674,000 by the deadline if it is to avoid further enforcement action.
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 obligation, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
Of the three other suppliers who missed the original deadline, two have paid their outstanding bills in full.
Delta Gas and Power Ltd has since made its £92,000 payment and Robin Hood Energy Ltd has paid £9.4m.
However, Toto Energy last week ceased to trade, with their 134,000 customers subsequently taken on by EDF Energy.
The Energy Ombudsman revealed that it had received more than 730 complaints about Toto Energy in 2019.
Robin Hood chief executive Gail Scholes, however, hit back at the regulator, saying in a statement that although the company had agreed with Ofgem that it would make its payment in instalments by March 2020, it subsequently received a letter on 1 October asking for payment by the end of the month:
“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.”
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Mary Starks, executive director of consumers and markets said: “The Renewables Obligation schemes provides important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050.
“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.”
Main image credit: Getty