Energy Suppliers Charged £14.7m For Renewables Obligations

Four energy suppliers have been ordered to pay £14.7 million in outstanding payments to Renewables Obligations (RO) schemes by the end of this month after missing the original deadline.

Ofgem has issued the order to Delta Gas and Power Ltd, Gnery Ltd, Robin Hood Energy Ltd, and Toto Energy Ltd after they failed to pay by September 1st 2019.

So far, they have not offered Ofgem assurances they will manage to pay what they owe by the new deadline of October 31st, which means they risk having their licence revoked if they fail to settle the balance on time.

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.”

The RO scheme requires suppliers to provide Renewables Obligation Certificates to prove they have sourced enough electricity from green fuels. Failing to do this means they have to pay into a fund by August 31st.

This amounted to £91,937 for Delta Gas and Power Ltd, £637,876 for Gnergy Ltd, £9,435,925 for Robin Hood Energy Ltd, and £4,555,880 for Toto Energy Ltd.

Ms Starks added: “Supplier failure to comply with the schemes undermines the integrity of the schemes.”

She stated that the enforcement action “sends a strong signal” that suppliers need to fulfil their obligations or lose their licence.

The Renewables Obligation was introduced in England, Wales and Scotland in 2002 not only to encourage, but force, energy suppliers to acquire more electricity from renewable sources.

Ofgem administers the initiative, assessing whether RO applicants should be granted accreditation.

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