Ofgem has issued Nabuh Energy a provisional order after the supplier failed to pay £872,200.62 it owes in renewables obligations (RO).
Nabuh failed to meet today’s (31 October) late payment deadline and therefore it must pay the full amount plus interest immediately or the regulator will take further action to enforce payment.
A failure to comply with the order means the Sheffield-based supplier could have its licence revoked.
Earlier this week, Ofgem issued a final order compelling Gnergy to make the outstanding payment of £673,876.62 plus interest to comply with the RO schemes by today.
At the beginning of October the regulator named four suppliers who failed to meet the first deadline to pay their RO worth a combined £14.7 million.
These were:
- Delta Gas and Power Ltd – £91,937
- Gnergy Ltd – £637,876
- Robin Hood Energy Ltd – £9,435,925
- Toto Energy Ltd – £4,555,880
Both Robin Hood Energy and Delta Gas and Power have paid their obligation, while Toto Energy has since ceased trading.
Ofgem said it could not confirm whether more suppliers owed RO payments until it publishes more information later in November.
Last year fellow challenger supplier Snowdrop Energy transferred all its customers to Nabuh, which ranked bottom of Citizens Advice’s star ratings table for customer service for Q2 2019, with a score of 1.9.
Renewables Obligation scheme
Under the government’s RO schemes, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting renewables obligation certificates (ROCs) to Ofgem by 1 September.
If suppliers do not have enough ROCs to meet their obligation, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
Shortfalls in the late payment fund for the RO scheme will trigger mutualisation if the relevant threshold is met (£15.4 million for England and Wales, and £1.54 million for Scotland).