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Ofgem Warns GnENERGY Over Unpaid Renewable Obligations Bill


Energy supplier GnENERGY has been ordered by the regulator Ofgem to pay its outstanding Renewable Obligations bill.

A total of four energy suppliers failed to make their Renewables Obligations payment on the August 31 deadline – GnENERGY, Delta Gas and Power, Robin Hood Energy and Toto Energy. All these companies had been given until October 31 to pay their bills in full or else they could be stripped of their licences.

Under the Renewables Obligation scheme, energy suppliers must provide Ofgem with certificates (ROCs) proving they have acquired enough of their energy from renewable sources. GnENERGY currently owes £673,876 plus interest to Ofgem in unpaid ROCs.

“The Renewables Obligation schemes provide important support to renewable electricity generators and play an important role in Great Britain’s journey to a net-zero emission economy by 2050,” said Mary Starks, executive director of consumers and markets at Ofgem.

“Following our intervention, we have successfully received payment from two of the four suppliers by the 31 October deadline. If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked.”

A spokesperson for GnENERGY said: “Our appeal to Ofgem to allow us a payment plan has been declined and we do not respect their decision. Small companies cannot survive selling energy alone, we have therefore remodelled ourselves and established a tripartite alliance with Logicor and Senapt. This will enhance our current debt collection which stands at £1.6 million and we do hope to retrieve this amount to meet our commitments, while still negotiating with Ofgem.”

Another of the energy suppliers to have missed the August 31 deadline – Toto Energy – has since gone bust, leaving around 134,000 domestic customers to be taken on by EDF Energy. The other two – Delta Gas and Power and Robin Hood Energy – have since made their payments of £92,000 and £9.4 million respectively. However, the chief executive of Robin Hood Energy, Gail Scholes, didn’t hold back in her criticism of Ofgem.

“It is frustrating that, in our view, following our proactive and open conversation with Ofgem, we now find ourselves the subject of significant media interest, with questions being asked about our fundamental ability to operate as a business,” said Ms Scholes.

Fergus Cole
Fergus Cole

Fergus is a journalist specialising in the personal finance, energy and broadband sectors. He also has a passion for travel and adventure so tries to make the most of this in any spare time he gets.

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