The first list of unpaid invoices from the restarted Capacity Market has shown there is a £38.2 million deficit so far.
A summary of missed payments published by the Electricity Settlements Company (ESC) listed 33 suppliers who have so far failed to make a payment. Nine of these have already ceased trading.
A mutualisation process to recoup the lost funds will start next month and ESC has confirmed there is already a shortfall of at least £8 million.
The invoices, submitted earlier this month following the reinstatement of the Capacity Market, cover a year of uncollected charges totalling £1.2 billion.
The list is topped by Hudson Energy, which owes c£9 million in Capacity Market payments. The group was acquired by Shell last month.
A spokeswoman for Hudson told Utility Week:“As Hudson Energy completes its sale to Shell Energy Retail Limited, we have been careful to manage industry payments. This is a matter between ourselves and the relevant industry bodies, with whom we have been liaising throughout.”
Co-Op Energy is also listed as owing £6 million. Last month Octopus Energy acquired the customer base of Co-Op Energy and sister brand, Flow Energy, which is listed as owing £3 million. Octopus said the responsibility for the payment lies with the Midcounties Co-Operative.
A spokesperson for Co-op Energy said: “Talks about this year’s capacity market are ongoing with the relevant industry bodies and we will make the appropriate payments as soon as that process is concluded.”
Also with outstanding payments over £1 million are the now defunct Toto Energy (£1.1 million), Eddington Energy (£1.5 million), Eneco Energy (£1 million), Foxglove – the Outfox the Market operator (£1.3 million), PFP (£1 million), E (gas and Electricity) (£2.9 million), Economy Energy (£2 million) and Pozitive Energy (£3.8 million).
The total amount owed equates to 3.3 per cent of the total Capacity Market payments. A spokesperson for the ESC told Utility Week this included several direct debits the organisation is currently waiting for.
The first mutualisation process starts next month, with a potential second round to be held in Spring 2020.
The spokesperson said: “ESC will be taking every step we can to reduce the outstanding amount prior to issuing the mutualisation invoices on 13 December.”
The Capacity Market was suspended for a year while the European Commission conducted an investigation into whether it complied with state aid rules. That investigation approved the market’s return last month.
The non-payment register can be viewed in full on the ESC’s website, where it will be updated as payments are made.