Two energy providers issued with provisional orders to pay renewables obligations
Ofgem has issued two energy providers with provisional orders for failing to demonstrate their renewables obligations.
The regulator has ordered Nabuh Energy to pay £872,200.62 plus interest and Breeze Energy to pay £486,232.06 including interest.
Under the UK Government’s renewables obligation schemes, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to Ofgem by September 1.
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 August 31.
Nabuh Energy and Breeze Energy failed to pay into the buy-out fund or present the required number of ROCs by the August and September 2019 deadlines.
Both firms previously gave assurances to Ofgem that they would meet their renewables obligations by October 31 but then indicated they would not be in the position to make payments by the deadline.
The suppliers are required to make the necessary payment immediately. If they do not, Ofgem will take further action to enforce payment, which may ultimately lead to the revocation of their licences.
Last month, Ofgem issued a final order compelling Gnergy Ltd to make the outstanding payment of £673,876.62 plus interest to comply with the renewables obligation schemes by 31 October 2019.