Ofgem’s final orders for £1m in late RO payments looming over two suppliers

The energy regulator is consulting on issuing final orders to Delta Gas and Power and Logicor

Big Zero Report 2022

Two energy suppliers might soon be ordered by Ofgem to pay more than £1 million for a delay in their Renewables Obligation (RO) payments.

The government’s Renewable Obligation scheme urges energy companies to demonstrate they have sourced enough electricity from renewable sources to meet their obligation.

The suppliers have to present Renewables Obligation Certificates (ROCs) – the ROCs are designed to encourage the generation of electricity from eligible renewable energy sources in the UK. They are issued by Ofgem.

Ofgem has launched a consultation on issuing Delta Gas and Power and Logicor Energy Limited with final orders to compel them to make £1,021,943.60 in outstanding payments to comply with the RO scheme

The regulator has said these two suppliers had failed to meet 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 has stressed.

Charles Hargreaves, Ofgem Enforcement and Emerging Issues Deputy Director, said: “There has never been a more important time to make use of sustainable energy and schemes such as the ROCs reduce carbon emissions from the supply of electricity.

“It is important suppliers follow through on their obligated payments not only to support consumer interests, but also the wider energy market ecosystem and the UK’s 2050 net zero ambition.”

ELN has approached Delta and Logicor for comment.

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