Ofgem orders Delta to cough up £530,000 as energy crisis deepens
Challenger suppliers continue to feel the heat from the energy crisis, with market regulator Ofgem threatening to revoke the licence of Delta Gas and Power (Delta) unless it coughs up a six-figure sum for unpaid renewable obligation payments.
The business-to-business energy firm has been slapped with a final order by the watchdog to pay over £530,000 plus interest by the end of today.
Should Delta fail to pay, Ofgem warned it could take further enforcement action – such as revoking the supplier’s licence
The renewables obligation schemes financially back large-scale green projects in the UK.
They place requirements on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.
Delta is a non-domestic supplier, serving 1,690 business customers across the UK.
Earlier this year, it failed to pay into the buy-out fund or present the required number of Renewable Obligation Certificates by 31 August and 1 September 2022 respectively.
Charles Hargreaves, deputy director of enforcement and emerging issues at Ofgem, argued the rise in gas prices over the past 12 months reinforced the need to transition to renewables, and the enforcement action was justified to ensure the renewable obligation scheme would not be undermined in the push for net zero and a greener future.
Earlier this month, Ofgem consulted on issuing final orders for Delta and Logicor Energy Limited (Logicor) for unpaid Renewable Obligation payments.
While Logicor has paid its obligation in full, Delta is yet to meet its obligation and has therefore been issued with a final order by Ofgem, as the regulator follows through on taking robust action.
Ofgem has been determined to clean up the energy market following the industry crisis, bringing in fit and proper person rules, financial stress tests and market stabilisation charges.