Ofgem fines energy firms £15m for late renewable energy payments

·2-min read
Solar panels at Kencot solar farm in Lechlade. Photo: Daniel Leal-Olivas/PA Wire/PA Images
Solar panels at Kencot solar farm in Lechlade. Photo: Daniel Leal-Olivas/PA Wire/PA Images

Energy regulator Ofgem has issued final orders for three UK energy suppliers to pay £15m ($19.4m) they owe in Renewables Obligations (RO) and Feed-in Tariff (FIT) scheme levelisation payments.

Nabuh Energy Limited, Robin Hood Energy Limited, and Symbio Energy Limited have been ordered to make outstanding payments, plus interest, to comply with the renewable energy schemes by 31 October.

Under the RO scheme, energy firms are required to buy a percentage of the power they sell from renewable sources. However, the firms failed to present enough Renewables Obligation Certificates (ROCs), which are issued to to them as “proof" of each unit of renewable energy purchased, by the initial deadline of 31 August.

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Robin Hood Energy also failed to pay into FIT, which funds payments to generators for the electricity they create – including that which is exported back to the National Grid — by the initial deadline of 1 September, Ofgem said.

The regulator also consulted on issuing final orders to firms Tonik Energy, Co-Operative Energy, Flow Energy and MA Energy, it revealed.

Since then, MA Energy has cleared its outstanding payments, while Tonik Energy has ceased trading. Meanwhile, Co-operative Energy and Flow Energy have “assured” Ofgem that they will pay the requirements before the late payment deadline.

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Other suppliers that missed the initial 31 August and 1 September deadlines have made similar reassurances. Failure to meet this next deadline will lead to enforcement action and could result in the firms’ licence being revoked, the regulator added.

Cathryn Scott, Ofgem's director of enforcement and emerging issues, said: "The Renewables Obligation and Feed-in Tariff schemes provide vital support to renewable electricity generators and play an important role in Great Britain's journey to a greener, fairer, energy system.

"This enforcement action shows that we will take robust action if suppliers undermine such schemes by failing to meet their obligations, which could lead to them having their licence revoked."

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