Ofgem issues Breeze Energy with a provisional order
Ofgem issues Breeze Energy with a provisional order which means they have to pay £486,232.06 including interest in Renewables Obligation after they failed to pay into the buy-out fund or present the required number of ROCs by the 31 August and 1 September 2019 deadlines.
After Breeze Energy gave assurances to Ofgem that it would meet its Renewables Obligation by 31 October 2019, it indicated it would not be in the position to make part of the payment by the deadline.
If suppliers do not have enough ROCs to meet their obligation, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.
The government’s Renewables Obligation schemes, means that suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to Ofgem by 1 September.
Breeze Energy is required to make the necessary payment immediately. If it does not, Ofgem will take further action to enforce payment, which may ultimately lead to the revocation of its licence.
This follows a provisional order issued Nabuh Energy compelling the supplier to pay £872,200.62 plus interest in Renewables Obligations on 31 October 2019.
Earlier in the week, Ofgem issued a final order compelling Gnergy Ltd to make the outstanding payment of £673,876.62 plus interest to comply with the Renewables Obligation schemes by 31 October 2019.
This also follows Toto Energy ceasing to trade on the 23rd October 2019 and their customers being taken on by EDF Energy.
It’s unlikely that Breeze, Nabuh and Gnergy will be able to make these payments and more small suppliers will come out of the market as they are finding the funds to support its Renewable Obligations beyond their means.