Ofgem issues Gnergy Ltd with a notice of failure to comply with a final order over unpaid Renewables Obligation payments
Press release
- The supplier has failed to comply with a final order requiring it to pay £673,876.62 plus interest to the Renewables Obligation buy-out fund
- Ofgem will take strong enforcement action against suppliers that undermine the Renewables Obligation schemes
Ofgem has issued Gnergy Ltd with a notice of failure after the supplier failed to comply with a final order over unpaid Renewables Obligation payments.
Under the 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 obligations, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
If payments haven’t been made by 31 August, suppliers have a late payment window until 31 October to meet their obligation, inclusive of interest charged during this period.
Ofgem issued Gnergy Ltd with a final order on 29 October 2019, requiring the supplier to make an outstanding payment of £673,876.62 plus interest by 31 October 2019 to comply with the Renewables Obligation schemes.
Gnergy Ltd was unable to give Ofgem any assurance it would meet its obligation. It failed to make any payments by the deadline and has not paid the outstanding amount since. Ofgem is now taking further enforcement action by starting the process that may result in the revocation of the supplier’s licence.
Notes to editors
- For more information, see Gnergy Lt’d notice of failure to comply with a final order.
- The Renewables Obligation schemes are government schemes to support large-scale renewable electricity projects in the UK. They place an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources. Ofgem administers the schemes on behalf of government.
- ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligations.
- Mutualisation has been triggered for the Renewables Obligation scheme due to the threshold for the shortfall having been met. This means that suppliers who have complied, in whole or in part, with their obligations will be required to make up the shortfall.
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