Revocation of confirmed provisional order
On 24 March 2022 the Authority issued a Notice of Proposal to revoke a confirmed provisional order issued to Delta Gas and Power Limited (“Delta”). The Authority was satisfied that the confirmed provisional Order should be revoked because Delta had paid its Renewables Obligation (“RO”) payment in full for the year 2020/2021.
The Authority gave this notice in accordance with section 26(6) of the Electricity Act 1989. Any representations or objections with respect to the proposed revocation were invited to be made to the Authority by 5pm, 22 April 2022. No representations or objections were received in response to the proposal to revoke the confirmed provisional order.
On 25 April 2022, the Authority issued a revocation order under section 25(7)(c) of the Electricity Act 1989. The Authority decided that the confirmed provisional order was no longer required for the purpose of ensuring Delta’s compliance with the RO as Delta had paid its RO payment in full for the year 2020/2021. The confirmed provisional order is no longer in place.
Proposal to revoke confirmed provisional order
The Authority invited representations or objections in relation to its proposal to revoke the confirmed provisional order dated 24 January 2022.
On 18 February 2022 Delta paid the outstanding sums due to the Authority in full, in accordance with the terms of the confirmed provisional order.
Pursuant to section 26(6) of the Act, the Authority was satisfied that the confirmed provisional order was no longer requisite for the purposes of securing Delta’s RO for the year 2020/2021.
Any representations or objections with respect to the proposed revocation were to be made to the Authority by 22 April 2022.
Decision to confirm provisional order
On 26 January 2022, the Authority published the confirmation of the provisional order, with modifications, issued to Delta, following the consultation period.
This confirmed provisional order required that Delta pay the outstanding amount of £78,664.29 forthwith.
Ofgem issued the provisional order on 28 October 2021 after Delta informed the Authority it would not make its RO payment of £284,278.28, including interest, by the deadline of 31 October 2021.
The Authority issued a Notice of Proposal to confirm the provisional order, with modifications, on 16 December 2021. The Notice of Proposal invited representation or objections in relation to the proposed confirmation by 13 January 2022. The Authority received no representations.
For more information, please see the Notice of Reasons document below, dated 24 January 2022.
Notice of Proposal to confirm provisional order
On 16 December 2021, the Authority published its notice of proposal to confirm the provisional order dated 28 October 2021, with modifications, imposed on Delta following on the grounds that Delta is contravening or is likely to contravene the requirement to discharge its RO under the arrangements set out in the Renewables Obligation Order 2015 (“the ROO”) and the Renewables Obligation (Scotland) Order 2009 (“the ROS”). The Authority proposed to confirm the order in the notice of proposal.
The Authority gave notice that in accordance with section 26(1) of the Electricity Act:
The Authority would consider these representations and then make a final decision on whether to confirm the provisional order prior to 27 January 2022 (the date on which the provisional order would lapse if not confirmed).
Issue of provisional order
On 28 October 2021, the Authority issued a provisional order to Delta under section 25(2) of the Electricity Act 1989 (EA89).
The particular behaviour of concern was that Delta failed to meet its RO, because it did not produce Renewables Obligation Certificates to the Authority by 1 September 2021, or make payments as an alternative by 31 August 2021, sufficient to discharge its RO.
In September 2021, Delta provided assurance that it could and would be in a position to make the necessary payment, including applicable interest, by the late payment deadline of 31 October 2021.
However, on 25 October 2021, Delta informed Ofgem that it would not be able to pay its RO by 31 October 2021.
The outstanding amount, including late payment interest, was £284,278.28. The modified provisional order required Delta to pay the outstanding amount forthwith.
Provisional orders are issued in certain circumstances in accordance with the Electricity Act 1989 and where certain conditions are satisfied. Further information regarding provisional orders is contained within our Enforcement Guidelines.
On 29 October 2021, the Authority published a Notice of Reasons explaining in greater detail the rationale for issuing the provisional order.