Seven energy suppliers owe the regulator £34 million in Renewables Obligation (RO) and Feed-in Tariff (FIT) scheme payments.
Ofgem announced this morning (2 October) that it is proposing to issue final orders against the retailers after they missed the deadlines to make either buy out payments or present RO certificates.
Robin Hood Energy owes in excess of £12 million, more than any other supplier. Tonik Energy also owes a considerable amount at £8.6 million.
The suppliers are:
- Co-Operative Energy
- Flow Energy
- MA Energy
- Nabuh Energy
- Robin Hood Energy
- Symbio Energy
- Tonik Energy
A total of 24 active retailers missed the deadlines, but 17 have either since paid the amount owed or given satisfactory assurances on meeting their obligations.
In addition to not meeting the RO deadlines Co-op Energy, Flow and Symbio also missed the deadline for the Q1 2018-19 RO/ ROS mutualisation payment and have not paid in full. The total outstanding payments amount to more than £148,500.
Both Co-op and Flow were acquired by Octopus Energy but the money owed relates to the period before the acquisition, meaning Octopus is not liable for the obligation.
Similarly Centrica, which recently acquired the customers of Robin Hood from Nottingham City Council, will not have to pay the money owed.
Separately, Robin Hood and Tonik failed to make their Year 10 annual levelisation payment for the government’s FIT scheme, which is administered by Ofgem. Between them, the pair owe more than £158,800.
| Total RO/ROS owed (excluding interest) | Q1 2018-19 RO/ ROS mutualisation owed | FIT Year 10 Annual levelisation owed | Total owed | |
| Co-Operative Energy Limited | £5,359,946.40 | £108,202.54 | – | £5,468,148.94 |
| Flow Energy Limited | £2,646,022.32 | £40,276.44 | – | £2,686,298.76 |
| MA Energy Limited | £1,385,749.72 | – | – | £1,385,749.72 |
| Nabuh Energy Ltd | £2,683,631.70 | – | – | £2,683,631.70 |
| Robin Hood Energy Limited | £12,057,879.42 | – | £33,945.51 | £12,091,824.93 |
| Symbio Energy Limited | £927,870.57 | £55.80 | – | £927,926.37 |
| Tonik Energy Limited | £8,651,815.92 | – | £124,868.96 | £8,776,684.88 |
Last year Nabuh was slapped with a provisional order by the regulator after owing more than £872,000 in RO payments. The supplier subsequently met its obligation.
Ofgem will now consult on whether to confirm the proposed final orders on the suppliers over the next 21 days. If confirmed, the retailers will be compelled to pay into the buy-out fund plus any interest by 31 October.
If they do not pay, Ofgem could start the process of revoking their supply licences.
Cathryn Scott, Ofgem’s director of enforcement and emerging issues, said: “The Renewables Obligations and Feed-in Tariff schemes provide important support for renewable generation, increasing the uptake of cleaner electricity and helping the country on its path to net zero emissions.
“Supplier failure to comply with these schemes and make the payments due undermines the integrity of the schemes and is unacceptable.
“This enforcement action sends a strong signal that suppliers must meet their obligations.”