Ofgem has issued Gnergy with a final order over its failure to make its Renewables Obligation (RO) payment of almost £674,000 plus interest.
The order compels the supplier to make the outstanding payments by the 31 October late payment deadline. If it fails to do this, further action could be taken.
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.
The energy retailer failed to meet both deadlines and has not given the regulator adequate assurances that it will meet the late payment deadline.
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).
Gnergy was named as one of four which had failed to meet the first deadline to pay their Renewables Obligations (RO), leaving them owing a total of £14.7 million.
Two suppliers, Robin Hood Energy and Delta Gas and Power, have met their obligation, while a third, Toto Energy, ceased trading last week.
Ofgem says it has engaged with all other suppliers that missed the 31 August and 1 September deadlines and has received satisfactory assurances that they will be in a position to make the necessary payments by the late payment deadline.
Mary Starks, executive director of consumers and markets, said: “The RO schemes provide important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050.
“Following our intervention, we have successfully received payment from two of the four suppliers by the 31 October deadline.
“If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked.”
After the 31 October late payment deadline, Ofgem will publish a summary of suppliers’ RO payments, late payments and missed payments.