Brilliant Energy has entered level two credit default according to balancing and settlement code administrator Elexon.
Parties trading on the balancing mechanism are required to post sufficient collateral to cover their outstanding payments in case they go under.
As the administrator Elexon will issue a warning if the amount owed exceeds a certain percentage of their credit cover.
A notice was published by Elexon today (5 March) on the BM Reports website, indicating the supplier’s outstanding charges amount to more than 90 per cent of its credit cover.
Last year Brilliant Energy was named as one of 14 suppliers which failed to meet its renewables obligation (RO) payment by the late payment deadline of 31 October.
The supplier was shown by industry regulator Ofgem to owe more than £77,000 in RO payments.
According to Ofgem Brilliant’s RO payment was “made in full very shortly after the deadline”.
Utility Week contacted Brilliant Energy for comment but no response had been received at the time of publication.
A supplier which was recently shown to be in level two credit default was Economy Energy, which has since ceased trading.
Like Brilliant, Economy also failed to pay its RO payments by the 31 October deadline.