Challenger supplier Solarplicity has again failed to pay money owed to feed-in-tariff (FIT) generators and is in danger of having its provisional order confirmed.
In a statement this morning (10 July) Ofgem said, while Solarplicity did meet the requirement to make outstanding payments by 16 May, it recently failed to make other FIT payments.
Specifically it noted that the supplier wrote to “at least” nine FIT generators early this month stating that payments due on 28 June would be delayed. On 3 July it contacted Ofgem and advised it would not be making those payments.
As a result the regulator has “concerns” around the supplier’s ability to make future payments and is now consulting on confirming the provisional order.
If Solarplicity fails to comply with a confirmed provisional order it is within Ofgem’s power to revoke its licence.
In response a spokesperson said:”Ofgem’s announcement implies doubt and concern over Solarplicity’s financial position which is not only unfair but irresponsible.
“We would like to assure suppliers and customers alike that we are working to strengthen our position financially and will continue to honour all payments.
“Given the role that Ofgem’s enquiry process has placed on our ability to take on new customers or market our business effectively, it is worrying to us that an industry regulator should take this approach.”
They added that the company was “disappointed” with Ofgem’s decision and that it has “gone to great lengths” to demonstrate it is already complying with the requirements it set out in May.
Solarplicity said it has offered “voluntary undertakings” to Ofgem to assure it of continued compliance and has proposed additional arrangements that go “above and beyond” the supplier’s obligations around payment handling.
Furthermore, the company said all payments are being made and there are arrangements in place to make all future payments.
“These arrangements have been well-received by our suppliers and have been honoured by Solarplicity”, the company added.
The accounts for Solarplicity have been listed as “overdue” on the Companies House website since February.
Solarplicity was previously slapped with a banning order in February this year for customer service failings. Ofgem decided not to confirm after the supplier significantly improved its customer service arrangements.
However, Ofgem says it still has some concerns in relation to how it treats vulnerable customers and those struggling to pay their bills and will continue to actively monitor Solarplicity’s performance in these areas.
The company says it intends to continue to engage with Ofgem closely to ensure a “swift resolution” to the matter.
It has agreed not to take on new customers until 5 August this year, other than those joining through community energy schemes which it will limit to 200 per week.