Solarplicity is in the energy regulator’s spotlight for a second time this year as Ofgem understands the supplier failed to pay several feed-in tariff (FIT) generators.
The company has previously been rapped for its poor customer service and has now been issued with a provisional order to pay the outstanding money owed to generators by 16 May.
The FIT scheme is a government programme designed to promote the uptake of renewable and low-carbon electricity generation technologies.
It requires participating licensed electricity suppliers to make payments on both generation and export from eligible installations.
Solarplicity is thought to have failed to pay several FIT generators despite receiving FIT levelisation payments which should allow the company to do so.
As well as being required to pay the outstanding money by Thursday next week, Solarplicity has also been ordered to make future FIT payments to generators by the relevant due dates.
The company has been warned “not to give preference to pay any FIT generator connected in any way to Solarplicity”.
The regulator said it is aware that “a number of” FIT generators, connected to Solarplicity, either through its corporate ownership or directorships, have registered as FIT generators with the supplier.
Ofgem outlined that the provisional order will remain in place for up to three months, unless it is confirmed.
Solarplicity will have to report back to the regulator on the progress of the actions set out in the provisional order.
Anthony Pygram, director of conduct and enforcement, said: “Not paying FIT generators will impact their finances and affect their viability, which is why we are taking swift action to ensure that Solarplicity makes the payments due.
“Suppliers must comply with their obligations and if they do not, ultimately we can take steps to revoke their licence.”
The regulator stressed that the issuing of a provisional order does not imply Ofgem has found “conclusive evidence” of a breach as this stage.
Ofgem is currently consulting on confirming a provisional order issued to Solarplicity in February 2019, ordering the supplier to make customer service improvements.
In March, Solarplicity denied rumours it was about to enter the supplier of last resort process but confirmed it had let 27 of its meter installers go.
The company has been banned from taking on new customers until it improves its customer service performance and its accounts are currently overdue according to the Companies House website.
Last month, the challenger supplier insisted its accounts are ready to be filed but the customer service provisional order from February, which was further modified on 18 April, was an “immediate priority”.
Solarplicity insisted it was continuing to work with the regulator to resolve the “historic issues”.