OFGEM is taking enforcement action against Gnergy Ltd after the supplier has failed to pay £673,876.62 plus interest in Renewables Obligations.
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 (ROC) to Ofgem by 1 September.
If suppliers do not have enough ROCs to meet their obligations, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
If payments haven’t been made by 31 August, suppliers have a late payment window until 31 October to meet their obligation, inclusive of interest charged during this period.
Ofgem issued Gnergy Ltd with a final order on 29 October 2019, requiring the supplier to make the outstanding payment by 31 October 2019.
Gnergy Ltd was unable to give Ofgem any assurance it would meet its obligation.
It failed to make any payments by the deadline and has not paid the outstanding amount since.
Ofgem is now starting a process that may result in the revocation of the supplier’s licence.