Ofgem threatens to revoke energy supplier Solarplicity’s licence over missing payments to small-scale generators

Ofgem has said it could revoke energy supplier Solarplicity’s license for the second time in a month, raising further questions about the future of the company.

The regulator today issued a provisional order against Solarplicity, requiring it to pay money to small-scale producers of renewable energy.

Read more: Energy supplier Solarplicity faces extended new customer ban

Ofgem said the supplier had failed to cough up what it owed to generators, a so-called feed-in tariff (FIT) payment. It gave Solarplicity until 16 May to pay all outstanding fees, and ordered it not to give preference to FIT generators connected to the firm.

Anthony Pygram, Ofgem’s director of conduct and enforcement, said: “Not paying FIT generators will impact their finances and affect their viability, which is why we are taking swift action to ensure that Solarplicity makes the payments due.

He added: “Suppliers must comply with their obligations and if they do not, ultimately we can take steps to revoke their licence.”

A spokesperson for Solarplicity hit out at Ofgem, saying it was “disappointed” the regulator issued the statement “in circumstances where we are already complying with the requirements it sets out.”

“Ofgem did not engage with Solarplicity prior to issuing the provisional order to understand the robust processes Solarplicity has in place, or the arrangements we have made in respect of FIT generator payments,” they said.

Ofgem said it had been in contact with both Solarplicity and FIT generators on the issue. “It appears to Ofgem from the complaints it has received from FIT generators that Solarplicity is not meeting [its] payment plans.”

The energy supplier is already banned from taking on new customers after Ofgem raised concerns about the way the firm handles complaints.

Last month the regulator said it was minded to indefinitely extended the ban, though there had been progress in some areas.

Solarplicity today said it has “rectified all issues identified by Ofgem”, adding it “fully expects that the restrictions … will be lifted”.

Read more: Ofgem ban energy supplier Solarplicity from taking on new customers

Solarplicity’s troubles come as several other challenger energy suppliers have been forced to call time on their businesses.

Earlier this year Economy Energy, which served 235,000 customers, shut its doors, becoming one of around a dozen firms to go bust in a little over a year.