Solarplicity Supply Ltd: provisional order (failure to make FIT payments)

Opened:
May 2019
Company:
Solarplicity
Regulation Area:
Sectoral Regulations

Notice of Proposal to confirm

On 10 July, the Authority published a notice of its intention to confirm and modify the provisional order (PO) in relation to Solarplicity’s Feed-In Tariff (FIT) payments. The consultation on this proposal closes on 1 August 2019.

Ofgem issued the provisional order on 10 May. This provisional order required that Solarplicity makes all outstanding FIT Payments due to FIT Generators when those FIT Payments become due. Solarplicity was also required to provide reports to the Authority evidencing that the FIT Payments due to FIT Generators have been made.

Solarplicity has agreed payment plans with FIT Generators to make all outstanding payments for quarter 3 of FIT year 9 (1 October 2018 – 31 December 2018).

The Authority understands that Solarplicity’s financial position appears no better now than when the provisional order was issued, and therefore considers that Solarplicity would fail to make FIT payments without the provisional order being confirmed.

In early July 2019, we received communications from several FIT Generators explaining that they had not received the FIT Payments due to them at the end of June in line with their agreed payment plans with Solarplicity, contravening the PO.

Ofgem is consulting on the intention to confirm the provisional order and will publish a final decision in August.

Issue of provisional order

On 10 May 2019, the Authority issued a provisional order to Solarplicity in accordance with section 25 (2) of the Electricity Act. The Authority had been in discussions with Solarplicity regarding its compliance with its obligations under 3.2.5 of Part 1 of Schedule A of Standard Licence Condition (SLC) 33 relating to Feed-in Tariffs (FIT).

In February 2019, we received communications from several FIT Generators which claimed they had not received the FIT Payments due to them for Quarter 3 of FIT Year 9 (1 October 2018 – 31 December 2018). We subsequently found that many payments due to FIT Generators by 21 February 2019 had not been made. Solarplicity provided a revised date for payment of 5 March 2019, but in most cases this revised payment date was not met.

This provisional order requires that Solarplicity makes all outstanding FIT Payments due to FIT Generators by 16 May 2019, and that it makes all future FIT Payments that become due to FIT Generators when those FIT Payments become due. When making FIT payments, Solarplicity must not give preference to any FIT Generator connected in any way to Solarplicity by virtue of its ownership (being part of Solarplicity’s group of companies) or directorship. Solarplicity must also provide reports to the Authority evidencing that the FIT Payments due to FIT Generators have been made.

Provisional orders are issued in certain circumstances in accordance with the statutory framework and where certain conditions are satisfied. Further information regarding provisional orders is contained within our Enforcement Guidelines.

For information relating to this provisional order, please see documents below.

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