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Ofgem to fine seven energy suppliers for failing to meet renewable targets

Ofgem is to order seven energy suppliers to pay £34m in relation to outstanding payments related to two renewable energy projects.

Under the Governments’ renewable obligation schemes, suppliers have to demonstrate that they have sourced enough electricity from renewable sources to meet their obligation.

If suppliers had not met their obligation by the 1 September deadline, they were obliged to make up the shortfall by paying into a buy-out fund administered by Ofgem.

The seven suppliers that have so far failed to meet their obligations include: Co-Operative Energy, Flow Energy, MA Energy, Nabuh Energy, Robin Hood Energy, Symbio Energy and Tonik Energy.

While it said that twenty-four active suppliers missed the deadlines initially, 17 of these have either since paid the amount owed or given satisfactory assurances to Ofgem on meeting their obligations.

The remaining seven suppliers have now been given until 31 October to pay into the Ofgem fund or risk having their licence revoked.

Cathryn Scott, Ofgem’s Director of Enforcement and Emerging Issues, said: “The 'Renewables Obligations' and 'Feed-in Tariff' schemes provide important support for renewable generation, increasing the uptake of cleaner electricity and helping the country on its path to net-zero emissions.

“Supplier failure to comply with these schemes and make the payments due undermines the integrity of the schemes and is unacceptable. This enforcement action sends a strong signal that suppliers must meet their obligations.”

Separately, it said Robin Hood Energy and Tonik Energy owe £158,814.47 in Feed-in Tariff (Fit) levelisation payments.

The Fit scheme provides payments to owners of small-scale renewable generators, such as solar panels on homes, and is funded through levies on suppliers.

In January, Ofgem levied fines totalling £10.5m on three energy firms after a massive power outage in August 2019 left thousands of homes and businesses without electricity. 

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