RO and FIT shortfalls trigger enforcement action and more costs for compliant suppliers

Suppliers have fallen short on payments to two renewables support schemes, prompting Ofgem to take enforcement action and potentially raising bills for other suppliers.

The regulator said that after late payments there was a shortfall of £58.6 million in Renewables Obligation payments.

It has launched investigations into Economy Energy and Spark Energy over their non-payment. It has agreed monthly payments with two other suppliers – URE Energy and Eversmart – to deliver the outstanding amounts by 31 March 2019.

Separately, there is a £4.2 million shortfall in supplier payments into the periodic levelisation fund for the Feed-in Tariffs scheme, which provides payments to owners of small-scale renewable generators and is funded through levies on suppliers.

Ofgem said it would shortly write to suppliers who did not meet their obligations in full under the Feed-in Tariffs scheme advising them that they are non-compliant and the matter has been referred to the regulator’s enforcement team for consideration.

Shortfalls in the two schemes will trigger mutualisation. This means that suppliers who have complied with their obligations will be required to make up the shortfall.