Challenger energy supplier Breeze Energy has entered double credit default with code administrators Elexon.
The Newcastle-based retailer entered level two default on 16 December, and level one default today (18 December).
Parties trading on the balancing mechanism are required to post sufficient collateral to cover their outstanding payments in case they go under.
Level two default occurs when a supplier’s outstanding charges amount to more than 90 per cent of its credit cover.
A level one default occurs when a supplier’s outstanding charges amount to more than 75 per cent of its cover.
Elexon, as the administrator of the balancing and settlement code, will issue a warning if the amount owed exceeds a certain percentage of their credit cover.
Breeze is still subject to a provisional order from Ofgem after failing to pay more than £486,000 in renewables obligation payments.
Ofgem would not confirm when asked if the supplier has paid any of the outstanding payment.
Furthermore, the supplier was revealed to owe more than £500,000 in capacity market payments.
Utility Week has contacted Breeze Energy but is yet to receive a response.