ENERGY regulator Ofgem has ordered Warrington-based, part council-owned, Together Energy, to repay nearly £12.5m in unpaid Renewables Obligations, or face the prospect of having its licence revoked.
Together Energy, which has offices in Warrington following a multi-million-pound investment by Warrington Borough Council for 50 per cent of the company, is one of seven suppliers ordered to pay £17.9m in unpaid Renewables Obligations payments by tomorrow, Sunday, October 31.
The company has responded saying the business has fully engaged with the regulator, remains solvent and viable and is well-positioned to put the late payment right.
According to the Government regulator, the seven active suppliers have not paid or provided adequate assurances that they will make their Renewables Obligation payments by the late payment deadline of 31 October 2021.
Ofgem has now issued the suppliers with final and provisional orders compelling them to pay £17.9 million in unpaid Renewables Obligations.
If the suppliers fail to make the payments, Ofgem could take further enforcement action which could include revoking a supplier’s licence.
Ofgem has issued two suppliers with final orders and five suppliers with provisional orders.
Earlier this month Ofgem consulted on issuing final orders for Ampower, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy for unpaid RO payments.
Home Energy Trading has paid its obligation in full, whilst Goto Energy and Colorado Energy have since ceased to trade, and therefore the decision has been taken not to issue final orders to these suppliers.
Ampower and Whoop Energy have been issued with final orders and have until 31 October 2021 to make the outstanding payments, plus interest.
Ofgem also engaged with other suppliers which missed the initial compliance deadlines, including Together Energy, one of five additional active suppliers are yet to meet their obligation and were unable to provide satisfactory assurances that they will be in a position to make the necessary payments by 31 October 2021.
These suppliers are Delta Gas and Power, Entice Energy, MA Energy, Neon Reef, and Together Energy, and they have now been issued with provisional orders.
The five suppliers failed to pay into the buy-out fund or present the required number of Renewables Obligation Certificates (ROCs) by the initial deadlines of 31 August and 1 September 2021.
They are now compelled to pay into the buy-out fund by 31 October 2021 with interest. If they do not pay, Ofgem could start the process of revoking their licences to supply energy.
Following the late payment deadline of 31 October 2021 and internal verification processes, Ofgem will publish a summary of suppliers’ RO payments, late payments and any payments which remain outstanding.
The final and provisional orders have been issued to the suppliers, with Together Energy owing £12,402,390.00 plus interest.
In response to Ofgem’s statement Together Energy released a statement on their website saying: “Together and Bristol Energy remain solvent and viable businesses.
“You may have seen in the press, or on the Ofgem website that Together have missed a payment to the regulator. This payment is for renewable obligations and is commonly referred to as the ROC.
“We have fully engaged with the regulator about this late payment, and we are well-positioned to put it right. In circumstances like the one we are in just now, where markets are behaving with such volatility, all businesses are forced to make difficult decisions. The decision to delay payment to Ofgem, is the best for our customers and the other companies who partner with us.
“Together and Bristol have been operating for 6 years collectively. We understand that with a spate of failed suppliers, large and small, that customers will be nervous. Please don’t be. We will continue to serve you from our offices in Clydebank, Warrington and Bristol, and we will continue with our award-winning recruitment policy where we commit to offering 90% of our roles to individuals from the poorest 10% of postcodes.
“We hope this provides reassurance to anyone who is anxious. We will continue to heat your homes for many years to come.”
*ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligations.
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