Ofgem is to revoke URE Energy’s licence to supply electricity after the supplier failed to meets its Renewables Obligation for 2017/18. It owed £209,013.78.
The supplier did not pay into the buy-out fund by 31 August 2018, or present Renewables Obligation Certificates by 1 September 2018, or make late payments by 31 October 2018.
Ofgem had 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 in May (see below) to make the payments.
For 2018/19, 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. 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.
From May 2019
Ofgem has told URE Energy that it must pay its £209,013.78 Renewables Obligation bill or the regulator will revoke the small supplier’s licence. But the regulator, which has been chasing the payment since September last year, has given the supplier three months to make the payment.
The company, which was granted a supply licence in 2016, owed £207,024.36 for the year to 31 March 2018. That was due for payment on 1 September and as it missed that deadline it accrued interest of £1,989.42. It then missed a late-payment deadline in October. Ofgem issued a ‘final order’ for payment on 8 March and on 1 May threatened licence withdrawal in its ‘notice of failure to pay’. The supplier’s website is still live but neither it nor comparison sites offered had an option to sign up with it.
Ofgem said, “URE has indicated that it intends to make payments in satisfaction of the outstanding sums but, despite various assurances provided to date, has not taken concrete steps to make specific proposals of a repayment nor to make any actual repayments”. The regulator notes that soon after the end of the three-month period the company will become liable for Renewables Obligation payments for the year to 31 March 2019.
Shortfalls in the Renewables Obligation (for example if a supplier ceases to trade) fall on the remaining suppliers through a ‘mutualisation’ process.