GNERGY Ltd could risk losing their license if they fail to pay £673,876.62 plus interest after the company missed the original deadline for Renewable Obligation.
According to Ofgem, the company has not provided adequate assurances that it will pay by the late payment deadline by 31 October.
Of the three other late payers for whom consultations to make final orders were issued, Robin Hood Energy Ltd and Delta Gas and Power Ltd have paid and Toto Energy Ltd has ceased to trade.
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 (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.
Gnergy Ltd failed to pay into the buy-out fund or present the required number of ROCs by the 31 August and 1 September 2019 deadlines.
This month, Ofgem also consulted on issuing Delta Gas and Power Ltd, Robin Hood Energy Ltd and Toto Energy Ltd with final orders for their missed Renewable Obligations payment by the original deadline.
Toto Energy Ltd has since ceased to trade and any outstanding Renewables Obligations will represent a shortfall in scheme funds.
Delta Gas and Power Ltd has since made its £91,937 payment plus interest and Robin Hood Energy Ltd has paid £9,435,925 plus interest in full and neither will be issued with a final order.
Ofgem has engaged with all other suppliers that missed the 31 August and 1 September deadlines and has received satisfactory assurances that they will be in a position to make the necessary payments by the late payment deadline.
Ofgem may also take ‘further enforcement action’ against other late payers who have previously provided adequate assurance if they fail to pay by the 31 October deadline.
“The Renewables Obligation schemes provides important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050″, Mary Starks, executive director of consumers and markets at Ofgem, said.
“Following our intervention, we have successfully received payment from two of the four suppliers by the 31 October deadline.
“If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked.”
Following the late payment deadline, Ofgem will publish a summary of suppliers’ Renewables Obligation payments, late payments and missed payments.
Should there be a shortfall in scheme funds at the late payment deadline, this will be addressed in line with the Renewables Obligation Orders.
Shortfalls in the late payment fund for the Renewables Obligation scheme will trigger mutualisation if the relevant threshold is met.
Gnergy Ltd has not yet issued a public statement on the announcement.