Ofgem to revoke licence of electricity supplier

URE Energy’s licence to supply electricity is to be revoked after the supplier failed to meet its Renewables Obligation for 2017-2018.

Ofgem said the firm failed to meet its Renewables Obligation by not paying into the buy-out fund by 31 August 2018, or presenting Renewables Obligation Certificates by 1 September 2018, or by making a late payment by 31 October 2018.

The energy watchdog previously gave notice to URE Energy and Eversmart Energy to deliver all outstanding Renewables Obligation payments by 31 March 2019 through monthly instalments. URE Energy failed to make any payments and was issued with a final order to make the payments.

URE Energy failed to comply with the final order, which required a payment of £209,013.78. Subsequently, Ofgem is revoking its licence to supply electricity.

Under the UK Government’s Renewables Obligation scheme, suppliers such as URE who do not source the required proportion of electricity from renewable sources have to pay into a buy-out fund administered by Ofgem.

For 2018-2019, suppliers have until 31 August 2019 to meet their obligation or can pay the amount owed plus interest within the late payment window until 31 October 2019.

If suppliers fail to meet their obligation, Ofgem can take action.

Last year, Ofgem opened investigations into Economy Energy and Spark Energy over their non-payment. Both have since exited the market.

Eversmart Energy paid what it owed after Ofgem gave the supplier notice to make its payment before 31 March 2019.

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