Ofgem is set to issue five suppliers with final orders to compel them to make £7 million in outstanding payments to comply with the Renewable Obligations (RO).
The suppliers are
• Ampoweruk , owing £3,590,236
• Whoop Energy, owing £56,306
• Goto Energy, owing £2,472,369
• Home Energy Trading, owing £2,252
• Colorado Energy, owing £883,182.3.
Two of the group are already facing final orders from Ofgem over monies owing for feed-in tariff (FIT) payments. They are Colorado Energy (£261,406.12) and Whoop Energy £3,780.22). The Feed In Tariff (FIT) scheme, which is administered by Ofgem, provides payments to owners of small-scale renewable energy generators, and is paid for by suppliers.
Ofgem said the five suppliers have failed to fully discharge their obligation by either presenting the required number of ROCs by the deadlines, or paying the full buy out payment, and have since failed to provide adequate assurances they will make the payment by the late payment deadline. If the final orders are confirmed after a 21 day consultation period, the five suppliers will be compelled to pay into the buy-out fund by 31 October 2021. If they do not pay, Ofgem could revoking their supply licences.
All supply companies are at risk of a further RO bill if payments fall short. So-called ‘mutualisation’ is triggered if the fund falls short by £15.4 million for England and Wales, and £1.54 million for Scotland. This means that suppliers will be required to make up the shortfall so generators receive promised payments.