Ofgem has ordered Nabuh Energy to pay more than £872,000 plus interest in outstanding payments to comply with the government’s Renewables Obligation (RO) scheme.

Under the RO scheme, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to the regulator by 1st 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 31st August.

Nabuh Energy failed to present the required number of ROCs and failed to pay into the buyout fund by the deadlines and has therefore been issued with a provisional order to make the outstanding payments.

Ofgem said the supplier previously gave assurances that it would meet its RO by 31st October 2019 but has since indicated it will not be able to make the payment by that deadline.

If Nabuh Energy does not have the necessary payment immediately, the regulator could take further action, which may lead to the revocation of its licence.

Response

Nabuh Energy said Ofgem has been made aware the oustanding payments will be made on or before 8th November 2019.

A spokesperson added: :”The delayed payment is not a cause for concern for any of our suppliers or customers and Ofgem have been made aware of the nature of the circumstances which have led to a delay in the balance of the RO payment being made.

“Nabuh predominantly supplies energy to homes with prepayment meters. Most suppliers have a much lower proportion of prepayment customers and consequently enjoy the benefit of monthly customer direct debit payments at a fixed amount. This to a large extent regulates cashflow and ensures that customers payments each month are consistent throughout the year. Nabuh’s business differs in that customer payments during the spring and summer months are low whereas payments during the autumn and winter are much higher.

“Nabuh’s growth has been significant over the course of the past 12 months. Growth at this rate puts a degree of pressure on the business during the spring and summer months. It was anticipated that additional funding would be required to meet the RO payment before Nabuh enters the winter months. Additional funding has been arranged and agreed however due to circumstances beyond the control of Nabuh, we have experienced delays which have caused a delay in the full payment of our RO obligations.

“We take our regulatory and environmental obligations very seriously and would like to take this opportunity to apologise to our customers and suppliers for any concern that this issue may have caused.”

Earlier this week, Ofgem issued a final order to GnERGY for its unpaid green tax bill.