Ofgem is issuing Symbio Energy with a provisional order, which compels it to pay around £450,000 in full for a government environmental scheme.
The Feed In Tariff (FIT) scheme, which is administered by Ofgem, provides payments to owners of small-scale renewable energy generators, and is funded through compulsory levies on suppliers.
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 the energy regulator, any supplier that fails to pay its payment by the deadline of 11 August 2021 is in breach of the rules of its supply licence.
Symbio has reportedly failed to make its Year 12 Quarter 1 FIT payment by the deadline and has told Ofgem it will pay on 3 September, over three weeks late. According to Ofgem, his will delay the distribution of this money to generators and suppliers.
At the same time, Ofgem is consulting on a final order requiring Symbio to respond to a request for information on the supplier’s cash flow forecasts.
The request is reported to follow Symbio’s failure to make previous deadlines for payment into Government renewable schemes. This kind of request for information is common and routine for Ofgem to issue.
According to Ofgem, Symbio could end up having its licence revoked if it fails to comply and Ofgem may open a formal investigation into the potential non-compliance, which could result in the supplier paying a penalty.
More information about the final and provisional orders in this case are available on the Ofgem website.
