Renewables Obligation Late Payment Distribution 2024 to 2025
Ofgem redistributed over £7.4 million in late payments to energy suppliers who presented Renewables Obligation Certificates.
We redistributed the 2024 to 2025 Renewables Obligation (RO) late payment fund on 9 December 2025. We paid a total of £7,414,269.00 to suppliers who presented Renewables Obligation Certificates (ROCs) this year. Suppliers received £7.97 per ROC presented after the redistribution of the buy-out fund. From the redistribution of the late payment fund, they have received an extra £0.07 per ROC. This means that the final recycle value for 2024 to 2025 is £8.04.
Details of the late payments we received from suppliers (including interest) and the amounts we redistributed for each RO scheme are in the table below (the amount redistributed also includes the remainder from the last late payment redistribution).
Late Payments Made and Redistributed
We redistributed late payments to the suppliers on the same basis as the buy-out fund, i.e. in line with the proportion of the total ROCs they presented across the three schemes.
As with the buy-out fund, the amounts we redistributed are rounded down to the nearest pound.
Suppliers have until 1 September to present ROCs to us or until 31 August to make buy-out payments to meet their obligations. Suppliers who have not met their obligations in full by this date must make late payments by 31 October. Late payments incur a daily interest penalty, at an annualised rate of 5% + Bank of England base rate (4% this year). This is specified in RO legislation.
Suppliers failed to meet their obligations by 1st September deadline
Of the four supplier groups who failed to discharge their obligation by the 31 August and 1 September deadlines, one of the four (Ruby Electricity Ltd) fully discharged by the late payment deadline of 31 October. Voltx Power Ltd paid £500,000 by the deadline and paid the remaining £416,539.50 after the late payment window on 3 November.
Rebel Energy Ltd is one of the two suppliers that has not met their obligation. They have entered into administration and have ceased trading on 19th September 2025.
Tomato Energy Ltd also failed to fully discharge their obligation. However, they made a late payment of £2,135,235.24, which included £63,724.57 in interest, to their England & Wales obligation. Tomato Energy Ltd ceased trading on 5 November 2025.
The total shortfall is determined by reference to article 72 of the Renewables Obligation Order 2015 and article 48 of the Renewables Obligation (Scotland) Order 2009.
The total shortfall amount across all RO schemes is £23,286,806.45 (excluding interest). This is distributed across the schemes, as follows:
- RO: £21,621,417.04
- ROS: £1,665,389.41
- NIRO: £0.00
As a relevant shortfall has not been reached, mutualisation has not been triggered for the 2024 to 2025 scheme year.
We are unable to pursue enforcement action against suppliers which have ceased trading and had their licence revoked. We will seek to recover outstanding payments due from such suppliers through the organisations’ administrators where appropriate.
Through our work on these issues, Ofgem seeks to secure the best outcomes for consumers and the wider energy market.
Please contact RECompliance@ofgem.gov.uk for more information.