Gnergy issued final order for unpaid Renewables Obligations bill

Ofgem has issued a final order to Gnergy Ltd to compel the supplier to make the outstanding payment of £673,876.62 plus interest to comply with the Renewables Obligation schemes by 31 October 2019.

Gnergy Ltd missed the original deadline to meet its Renewable Obligations and has not provided Ofgem with adequate assurances that it will pay by the late payment deadline by 31 October.

Of the three other late payers for whom we issued consultations to make final orders, Robin Hood Energy Ltd and Delta Gas and Power Ltd have paid and Toto Energy Ltd has ceased to trade.

Delta Gas and Power Ltd have since made its £91,937 payment plus interest and Robin Hood Energy Ltd has paid £9,435,925 plus interest in full and neither will be issued with a final order.

Ofgem may take further enforcement action against other late payers who have previously provided adequate assurance if they fail to pay by the 31 October deadline.

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 1 September.

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 31 August.

Ofgem has engaged with all other suppliers that missed the 31 August and 1 September deadlines and has received satisfactory assurances that they will be in a position to make the necessary payments by the late payment deadline.

If any of these suppliers fail to comply Ofgem is ready to take appropriate enforcement action against them.

Mary Starks, executive director of consumers and markets, said: “The Renewables Obligation schemes provide important support to renewable electricity generators and play an important role in Great Britain’s journey to a net-zero emission economy by 2050.

“Following our intervention, we have successfully received payment from two of the four suppliers by the 31 October deadline.

“If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked.”

Following the late payment deadline, Ofgem will publish a summary of suppliers’ Renewables Obligation payments, late payments and missed payments.

Should there be a shortfall in scheme funds at the late payment deadline, this will be addressed in line with the Renewables Obligation Orders.

Shortfalls in the late payment fund for the Renewables Obligation scheme will trigger mutualisation if the relevant threshold is met.

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