Energy supplier GnERGY issued with final order for unpaid green tax bill

Under the Renewables Obligation scheme, suppliers are required to demonstrate they have sourced enough electricity from renewable sources or pay into a buy-out fund

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Ofgem has issued GnERGY with a final order to compel the energy supplier to make the outstanding payment of more than £673,000 with interest under the Renewables Obligation (RO) scheme.

The RO scheme requires suppliers to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting RO Certificates (ROCs) to the regulator by 1st September.

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.

Earlier this month, the regulator had ordered four suppliers – Delta Gas and Power, GnERGY, Robin Hood Energy and TOTO Energy – to make the payments until 31st October after they failed to pay into the buy-out fund or present the required number of ROCs by the deadlines.

Ofgem said Robin Hood Energy and Delta Gas and Power have made the payments and TOTO Energy recently went bust, following which the regulator appointed EDF Energy to take on its customers.

It adds GnERGY has failed to provide satisfactory assurances that it will be in a position to make the payment of £673,876.62 within the next two days.

Additional suppliers that have not been named are said to have provided the assurances that they will make the payments by the late payment deadline, according to the regulator.

If any of the companies fail to comply, Ofgem will take “appropriate enforcement action” against them.

Mary Starks, Executive Director of consumers and markets said: “The Renewables Obligation schemes provides important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050.

“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.”

Response

A spokesperson from GnERGY said: “Our appeal to Ofgem to allow us a payment plan has been declined and we do respect their decision.

“Small companies cannot survive selling energy alone, we have therefore remodelled ourselves and established a TRIPARTIE ALLICANCE with LOGICOR and SENAPT. This will also 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.”