Ofgem has issued a final order to Gnergy to compel the supplier to its make its outstanding Renewables Obligation payment – £673,876.62 plus interest – by tomorrow (31 October 2019).
Ofgem had consulted on issuing three other suppliers – Toto Energy, Delta Gas and Power and Robin Hood Energy - with final orders for their missed Renewable Obligations payment by the original deadline. Of those three, Toto Energy has ceased to trade and its customers are being transferred to EDF Energy under ‘supplier of last repsort’ measures. Its outstanding Renewables Obligations will represent a shortfall in scheme funds. Delta Gas and Power has paid its £91,937 bill with interest and Robin Hood Energy has paid its £9,435,925 bill with the help of a loan from Nottingham Council.
Ofgem said other suppliers missed the 31 August and 1 September deadlines for payments but it “has received satisfactory assurances that they will be in a position to make the necessary payments by the late payment deadline”. It promised to take enforcement action if the payments are not forthcoming tomorrow. Under the Renewables Obligation, 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.
Shortfalls in the late payment fund for the Renewables Obligation scheme will trigger mutualisation if the relevant threshold is met.