Seven small UK energy suppliers must pay renewables fees or risk losing licence
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Ofgem Renewables Obligations drive supplier payments for renewables fees, feed-in tariffs, and renewable generation, with non-payment risking supply licences amid the price cap and volatile wholesale prices across the UK energy market.
The Core Facts
Mandatory payments by suppliers funding renewables via feed-in tariffs; non-payment can trigger supply licence revoking.
Seven suppliers owe £34m; Ofgem deadline is Oct 31.
Non-payment can trigger revocation of supply licences.
Fees fund Renewables Obligation and Feed-in Tariff programs.
Wholesale volatility and price caps strain small supplier finances.
Seven small British energy suppliers owe a total of 34 million pounds ($43.74 million) in renewables fees, amid a renewables backlog that has stalled projects, and could face losing their supply licences if they cannot pay, energy regulator Ofgem reports.
Under Britain’s energy market rules, suppliers of energy must meet so-called renewables obligations and feed-in tariffs, including households' ability to sell solar power back to energy firms, which are imposed on them by the government to help fund renewable power generation.
Several small energy companies have gone bust over the past two years, a trend echoed by findings from a global utility study on renewable priorities, as they struggled to pay the renewables fees and as their profits were affected by a price cap on the most commonly used tariffs and fluctuating wholesale prices, even as a 10 GW contract brings new renewable capacity onto the UK grid.
Ofgem has called on the companies to make necessary payments by Oct. 31, as moves to offer community-generated power to all UK customers progress.
“If they do not pay Ofgem could start the process of revoking their licences to supply energy,” it said in a statement, as offshore wind power continues to scale nationwide.
The seven suppliers are, amid debates over clean energy impacts, Co-Operative Energy Limited; Flow Energy Limited; MA Energy Limited; Nabuh Energy Limited; Robin Hood Energy Limited; Symbio Energy Limited and Tonik Energy Limited. ($1 = 0.7773 pounds)
