Neon Reef Limited (“Neon Reef”) ceased trading on 16 November 2021 and its licence to supply electricity was subsequently revoked. As a result, the provisions of the provisional order, issued to Neon Reef on 28 October 2021, are no longer in effect.
Neon Reef’s customers have been transferred to British Gas under the Supplier of Last Resort (SoLR) process. If you would like any further information regarding the SoLR process and how this is being managed please see: Ofgem appoints British Gas to take on customers of Neon Reef Limited and Social Energy Supply Ltd | Ofgem
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.
The particular behaviour of concern was that Neon Reef failed to meet its Renewables Obligations (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, Neon Reef 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.
After further correspondence, the Authority considered that Neon Reef may not have been in a position to make the necessary payment, plus applicable interest, by the late payment deadline of 31 October 2021.
The provisional order required Neon Reef to make a payment to the Authority in full settlement of its RO for the obligation period of 1 April 2020 to 31 March 2021, in the sum of £349,148.80, plus accrued interest, by no later than 31 October 2021.
For information relating to this provisional order, please see the documents below.