Delta Gas and Power: Final Order

Orders
  • Open - Decision Proposed - Confirm Final Order
  • Decision Proposed – Revoke Final Order
  • Final Order issued
  • Notice to rectify
  • Notice to revoke licence
  • Closed

Publication date

Company

Industry sector

Supply and Retail Market

On 28 September 2022, the Authority issued a Notice of Proposal to make a Final Order on Delta Gas and Power Ltd. (“Delta”) in accordance with section 26(1) of the Electricity Act 1989.

The behaviour of concern giving rise to the proposal is that Delta failed to meet its Renewables Obligations (RO), by failing to produce Renewables Obligations Certificates to the Authority by 1 September 2022 or to make payments as an alternative before 1 September 2022, sufficient to discharge its RO.

On 7 September 2022 the Authority requested for Delta to provide sufficient assurances that it would be in a position to make the necessary payment, including applicable daily interest, by no later than the late payment deadline of 31 October 2022; whilst Delta provided information in response to this, these assurances were insufficient.

Representations or objections concerning the proposed Final Order were invited to be made to the Authority by 5pm on 19 October 2022. The Authority received representations from Delta and a third party which were considered. Additionally, during the consultation period, Delta made full payment of their RO (Scotland), however the remaining RO is still outstanding.

Therefore, on 25 October 2022, the Enforcement Decision Panel (“EDP”), decided to make a Final Order.

The Final Order required Delta to make payment to the Authority in full settlement of its RO for the obligation period of 1 April 2021 to 31 March 2022, the sum of £530,809.20, plus accrued interest, by no later than 31 October 2022.

On 25 November 2022, Delta paid its remaining RO balance for the 2021/22 year. The Authority is satisfied that the Final Order is no longer requisite for the purposes of securing Delta’s compliance with its 2021/22 RO because Delta has paid its outstanding RO obligation in full, albeit late.

Accordingly, the Authority hereby gives notice under section 26(6) of the Electricity Act 1989 that it proposes to revoke the Final Order.

The Authority invites representations or objections in relation to its proposal to revoke the Final Order.

Any representations or objections in respect of this notice of the Authority’s proposal to revoke the Final Order must be made in writing on or before 5pm on 19 January 2023 (being not less than 28 days from the date of the publication of this notice) by email to tom.sykes@ofgem.gov.uk and jonathan.mcleod@ofgem.gov.uk.

Final Orders are issued in certain circumstances in accordance with the statutory framework on Final Orders pursuant to section 25(1) of the Electricity Act 1989 and where certain conditions are satisfied.

Further information regarding Notices to make a Final Order and Final Orders is contained within our Enforcement Guidelines. For further information relating to this Notice to make a Final Order, please see the documents below.