GnERGY Hit With Failure to Comply Notice

Energy supplier GnERGY has been issued with the notice over unpaid taxes.

Ofgem found that the company had failed to comply with a final order to pay Renewable Obligation (RO) taxes that were owed after the company failed to get enough energy from renewable sources.

Energy suppliers are all obliged to source a percentage (40.9% for 2017-18) of their electricity from renewable sources. They demonstrate that they have fulfilled this obligation by presenting RO Certificates (ROCs) to Ofgem by the 1st of September.

Any suppliers that do not have an adequate amount of ROCs to meet their quota must pay into an Ofgem-administered buy-out fund in order to make up the shortfall. This must be done by the 31st of August on the relevant year.

The energy regulator issued GnERGY with a final order on 29th October last year insisting that make a payment of £673,876 plus interest within two days in order to be in compliance with the RO scheme.

In a press release issued on the 9th of January, the watchdog said that GnERGY has not paid the outstanding amount and had also failed to give any assurance that its RO obligations would be met, adding:

 “Ofgem is now taking further enforcement action by starting the process that may result in the revocation of the supplier’s licence”.

Speaking to Energy Live News, GnERGY explained that they had subsequently merged with another company that would provide a “very large investment”.

Tikendra Dewan, Chief Executive of GnERGY, said: “A meeting with Ofgem on 19 November 2019 took place at the Ofgem headquarters to explain GnERGY’s new vision for 2020. Given the recent holiday season and the funds expected being transferred from abroad, we requested Ofgem to allow us some time, on the understanding that we will abide with the instruction as per the warning letter.

“As an assurance, our legal team officially confirmed the company’s position, however, despite this fact Ofgem have announced their warning following the final order. Had we been allowed 10 days to clear the payment, we could have avoided this unnecessary bad publicity”.