Notice of decision to impose a financial penalty on Delta gas and power following our enforcement case into its compliance with the Renewable Obligation

Penalty notice

Publication date

Company

Industry sector

Supply and Retail Market

Scheme name

RO

Proposal to Impose a Financial Penalty

On 26 January 2023, the Gas and Electricity Markets Authority (“the Authority”) published a notice of proposal to impose a financial penalty of £100,000 (reduced to £70,000 for early resolution) on Delta Gas and Power Limited (Delta) for its failure to comply with Article 68 of the Renewables Obligation Order 2015 (as amended) (ROO).

Under Article 68 of the ROO, for compliance period 2021/2022, Delta was required to make a payment to discharge its Renewables Obligation to the Authority by the late payment deadline of 31 October 2022. Delta did not discharge its obligation in full by 31 October 2022, making its final payment on 25 November after being served with a statutory demand for the amount.

The Authority considered it appropriate to impose a financial penalty for this contravention.  Representations or objections to the proposal were invited to be made to the Authority by 5pm on 16 February 2023.

The Authority received no representations or objections by this deadline and Delta confirmed in writing to the Authority their agreement to pay the reduced fee of £70,000 for early resolution.

Decision to Impose a Financial Penalty

Therefore, on 28 March 2023 the Authority decided to confirm its proposal to impose a financial penalty of £70,000 on Delta for its failure to comply with Article 68 of the ROO.

The Authority gives notice of its decision under section 27A (5) of the Electricity Act 1989. Further details can be found in the Notice of Decision to Impose a Financial Penalty.