Ofgem is issuing Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy with provisional orders, compelling them to pay around £765,000 in total into the Feed-In Tariff scheme.
Administered by the energy regulator, the Feed-In Tariff (FIT) provides payments to owners of small-scale renewable energy generators, and is paid for by suppliers.
According to Ofgem, any supplier that fails to pay its Year 11 FIT levelisation obligation by the deadline of 17 September 2021 is in breach of the rules of its supply licence.
The FIT levelisation process is the mechanism by which the cost of the FIT scheme is apportioned across Licensed Electricity Suppliers. The cost is apportioned based on each supplier’s share of the Great Britain electricity market, whilst taking into account any payments they have made to FIT generators.
According to Ofgem, the five suppliers each failed to make their payments by the due date.
The energy regulator reports that Colorado Energy failed to pay £261,406.12, Igloo failed to pay £316,582.44, Neon Reef Limited failed to pay £37,350.76, Symbio Energy failed to pay £146,238.66 and Whoop Energy limited failed to pay £3,780.22. This is reported to delay the distribution of this money to generators and other suppliers.
If the suppliers fail to comply with the order made against them, Ofgem may take further enforcement action and they could end up having their licences revoked or facing a financial penalty.
More details on the provisional orders for Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy is available on the Ofgem website.
