Ofgem says seven suppliers owe £34m in RO and FiT fees

If these suppliers fail to pay they may be at risk of losing their licences, the energy regulator says

Ofgem has ordered seven energy suppliers to pay £34 million they owe in Renewables Obligations (RO) and Feed-in Tariff scheme levelisation payments.

Under the governments’ RO scheme, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligations by presenting Renewables Obligation Certificates (ROCs) to Ofgem by 1st September.

Levelisation payment is a scheme that provides payments to owners of small renewable generators and is funded through levies on suppliers.

The energy regulator says the seven suppliers are Co-Operative Energy, Flow Energy, MA Energy, Nabuh Energy, Robin Hood Energy, Symbio Energy and Tonik Energy.

It says the 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 would make the payment by the late payment deadline.

If the final orders are confirmed later this month, the seven suppliers will be compelled to pay into the buy-out fund by 31st October 2020.

Ofgem also warns if these suppliers do not pay they may be at risk of losing their licences.

Cathryn Scott, Ofgem’s Director of Enforcement and Emerging Issues, said: “The Renewables Obligations and Feed-in Tariff schemes provide important support for renewable generation, increasing the uptake of cleaner electricity and helping the country on its path to net zero emissions.

“Supplier failure to comply with these schemes and make the payments due undermines the integrity of the schemes and is unacceptable.”

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