Ofgem consults on issuing final orders for five energy suppliers to pay £7m

Posted at October 2, 2021 » By : » Categories : News » Comments Off on Ofgem consults on issuing final orders for five energy suppliers to pay £7m

Five small energy suppliers have been warned to pay a total of £7 million towards Ofgem‘s Renewable Obligations (RO) scheme.

The regulator said these companies are Ampoweruk, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy.

The RO scheme requires suppliers to prove that they have sourced enough electricity from renewables to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to Ofgem by 1st September.

If suppliers do not have enough ROCs to meet their obligation, they must compensate by paying into a buy-out fund by 31st August.

Suppliers who fail to comply by the 31st August, 1st September deadlines must make a late payment by 31st October.

Ofgem said it has contacted all suppliers that missed the deadlines to seek assurances that they will be able to pay by the late payment deadline.

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.

They have also failed to provide adequate assurances they will make the payment by the late payment deadline, Ofgem said.

If the final orders are confirmed later this month, the five suppliers will be forced to pay into the buy-out fund by 31st October 2021.

If they do not pay, they could be stripped of their licences.

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