Nabuh Energy on the brink as Ofgem demands outstanding payment
Nabuh Energy has become the latest energy supplier to be threatened with having its license revoked after Ofgem issued it with an order demanding outstanding Renewables Obligations be paid today.
The Sheffield-based company, which came bottom of Citizens Advice’s customer service rankings, owes £872,200.
Read more: Ofgem issues Gnergy final payment warning
Nabuh Energy is the second company in a week to be hit with such an order. On Tuesday Ofgem ordered Gnergy Ltd to make an outstanding payment of £673,876 by today.
Earlier this month Toto Energy had its license revoked after failing to make its payment on time, becoming the 16th supplier to go bust in a little over twelve months.
Toto’s 134,000 customers were taken on by EDF Energy.
Two other suppliers missed the original payment deadline but managed to pay their bills on time.
Delta Gas and Power Ltd has since made its £92,000 payment and Robin Hood Energy Ltd has paid £9.4m.
A statement from Ofgem said that although Nabuh Energy had previously given assurances that it would make the payment in full by 31 October, but has since indicated it will not be able to pay by the deadline.
The Renewables Obligation scheme is a government initiative to support large-scale renewable electricity projects in the UK.
They place an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.
Peter Earl, head of energy at comparethemarket.com, said: “Nabuh Energy is the fifth supplier to fail to meet Ofgem’s Renewables Obligations deadline in just two months. The recurrent pattern of small energy companies failing to meet their obligations underscores the urgent need for more stringent checks on new suppliers entering the market.
“For Nabuh Energy’s green-minded customers it will be particularly disappointing that their supplier has reneged specifically on a commitment for UK electricity suppliers to source an increasing proportion of electricity from renewable sources, such as wind and solar.”
Read more: Toto Energy collapses with 134000 customers affected
Mary Starks, executive director of consumers and markets said: “The Renewables Obligation schemes provides important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero emission economy by 2050.
“If any supplier undermines the scheme by failing to comply by the late payment deadline, we will take strong enforcement action that could lead to them having their licence revoked.”
Main image credit: Getty