Outfox the Market has been given a provisional order by Ofgem obliging it to make a Feed-in Tariff (FIT) payment of nearly £603,000 by tomorrow (12 February).
Outfox owes £602,930 for the Ofgem-administered scheme, which provides subsidies to small-scale renewable generators and is funded through a levy on suppliers.
Ofgem said it had been informed by the company that it would not pay the bill, covering the last three months of 2019, by tomorrow’s deadline.
If the supplier fails to comply with the provisional order, it could have its licence revoked and a formal investigation may be opened, which could result in it paying a penalty.
However, a spokesperson for Outfox the Market told Utility Week that it would make the payment on time.
“It is disappointing that Ofgem has issued a public release prior to the due date of 12 February 2020 for the levelisation payment to the feed-in-tariff scheme,” they added in a statement.
“The payment due date for all energy suppliers is 12 February. For Ofgem to issue a provisional order to Outfox the Market because it ‘believes Outfox the Market is likely to contravene SLC 33’ is presumptive and ultimately inaccurate.
“There is absolutely no regulatory basis for Ofgem making this announcement publicly, potentially causing reputational damage to Outfox the Market for a payment that is not yet due.
“Outfox the Market has never missed any obligatory payments and is fully-committed to satisfying all licencing conditions. Furthermore, the levelisation payment will be paid-in-full by the due date of 12 February 2020.
“Ofgem has confirmed that following receipt of the payment on the due date, the provisional order will be revoked.”
In documents published this morning, Ofgem noted that Foxglove Energy Supply, the licence holder, had previously failed to make payments on time for two quarters in year nine of the scheme (2018/19) and had to be chased up. It said it is generally concerned with the company’s “poor record of compliance”.
The regulator also highlighted a continuing trend in suppliers submitting late or inaccurate data and late payments during 2018/19. It noted that a shortfall emerged during all of the quarterly levelisation rounds and that a mutualisation process was also triggered for the first time.