Yahoo Finance Watchdog warns five energy suppliers over £7m renewables payments
The UK energy regulator has said it could start the process to revoke the licences of five small UK energy suppliers if they fail to pay £7 million towards its renewable scheme.
Ofgem announced on Friday ir is consulting on final orders for Ampoweruk, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy.
It said the five suppliers have all missed an initial deadline of August 31 or September 1.
With the global price rise in gas pushing up costs to buy energy, we know this is a worrying time for many people and news of suppliers going out of business is unsettling.
If a supplier exits the market, we're making sure you are protected 👇https://t.co/L6toJt0sAN pic.twitter.com/XLcPgwoNsL— ofgem (@ofgem) September 29, 2021
A final order to pay could be sent by the end of the month, Ofgem said.
The watchdog said AmpowerUK owes more than half of the total, with the replier required to make £3.59 million in obligation payments.
Meanwhile, Goto Energy owes £2.47 million, Colorado Energy £883,182, Whoop Energy £56,306 and Home Energy Trading needs to pay £2,252.
“If they do not pay, Ofgem could start the process of revoking their licences to supply energy,” the regulator said.
“In all instances Ofgem will seek to secure the best outcomes for consumers and the wider energy market.”
Failure to pay renewable obligations is often seen as a sign of suppliers’ being under financial distress and comes amid a flurry of recent collapses in the sector as firms struggle to cope with soaring gas prices.
Igloo, Symbio and Enstroga became the latest suppliers to cease trading on Wednesday, taking total failures in September to nine.
