Ofgem threatens six-figure fine for supplier over late renewable payments
Embattled challenger supplier Delta Gas and Power (Delta) could be hit with an eye-watering £100,000 fine from Ofgem for late payments into the industry’s flagship renewable scheme.
The energy firm was required to pay over half a million pounds (£530,809.20) plus interest into the Renewables Obligation (RO) scheme by the end of of October – but this was not paid until the end of November.
Ofgem argues that Delta’s contraventions were deliberate, and that the supplier knowingly failed to meet its scheme obligations on time – hence its proposal for a six figure fine.
Its failure to pay followed multiple reminders from Ofgem, including a final order being made last year.
The watchdog is prepared to reduced the levy to £70,000 if Delta agrees to settle.
Delta serves 1,690 business customers across the country, and previously faced enforcement action over RO payments in 2020/21, when Ofgem issued the company with a provisional order.
All other active suppliers in the GB energy market paid their 2021/22 RO on time, but Delta only paid after extensive compliance engagement and formal enforcement action by Ofgem.
RO schemes support large-scale renewable electricity projects and place an obligation on electricity suppliers to source an increasing proportion of their electricity from renewable sources.
Cathryn Scott, director of enforcement and emerging issues at Ofgem, said: “It is not acceptable for suppliers to delay meeting their obligations until enforcement action is taken by Ofgem. Compliance and enforcement engagement is a resource and time intensive activity, and we take a very dim view of any repeat offenders.”
Delta now has 21 days to respond to the notice of intent, after which an official decision will made on whether to issue the penalty.
The company has been approached for comment.