Delta Gas and Power could soon be ordered to pay £100,000 after its failure to pay the due sum of £530,809 in Renewables Obligation (RO) payments.
The notice aims to give a strong message to “repeat offenders”, Ofgem has said.
Delta serves nearly 1,690 business customers across the UK.
This is the second time Delta has been subject to enforcement concerning its RO payment.
A few days ago, ELN reported that executives from the business energy supplier were invited to respond to Ofgem’s provisional order by 2nd February as the regulator had previously raised concerns over the company’s financial resilience.
Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem, said: “It is not acceptable for suppliers to delay meeting their obligations until enforcement action is taken by Ofgem.
“Compliance and enforcement engagement is a resource and time-intensive activity and we take a very dim view of any repeat offenders.
“Schemes like the Renewables Obligation provide vital support to renewable electricity generators and are crucial to building a green energy system, helping Britain hit the government’s net zero carbon emissions targets and shoring up our homegrown energy security.
“Suppliers that do not make payments on time undermine the integrity of these schemes, can make unfair financial gains and could ultimately leave consumers and other suppliers to pick up the tab. This proposed fine sends out a strong message that late payment of these obligations will have consequences.”
ELN has contacted Delta for comment.