The energy regulator has posted details of the outstanding Renewables Obligation (RO) late payments it recovered from the administrators of the suppliers which are no longer trading.
The government’s RO scheme urges energy companies to demonstrate they have sourced enough electricity from renewable sources to meet their obligation.
The report suggests Ofgem recovered £217,563 from the administrators of Brilliant Energy for the compliance period 2017-2018, 2018-2019 and 2019-2020.
The total amount due is £1,810,778.
The regulator also received £75,148 from administrators of GENERGY – the company owes £1,328,180 in RO late payments.
Ofgem also recovered £1,362 from USIO which is also in administration – the supplier owes £185,390 in RO late payments for the period 2017-2019.
A few months ago, Ofgem consulted on issuing final orders to two energy suppliers, Delta Gas and Power and Logicor for a delay in their Renewables Obligation payments.
An Ofgem spokesperson told ELN: “As energy regulator, protecting consumers is always our top priority. We work hard to ensure funds owed by failed suppliers for their Renewables Obligation (RO) are robustly pursued and recovered wherever feasibly possible.
“It’s crucial to note that the amount of funds we can recover from a supplier if they are in administration is determined by the administrator themselves as often cost recovery is shared between many parties – not just Ofgem.
“This process may take a few years. The funds we have received and dispersed so far have been from suppliers who went into administration prior to the increase in gas prices in 2021. These processes are common for companies undergoing administration and not specific to energy suppliers or ROs.
“We hope to start receiving further funds from the more recent administrations in due course which we will redistribute accordingly and as a priority. But the longer-term solution to this issue is a more financially resilient energy sector where suppliers are less likely to go bust in the first place as we move towards a cheaper, cleaner, homegrown energy system. That is precisely what Ofgem is creating via the robust changes we have and are introducing.”
