UK utility fined £209,000 after renewables shortfall


Ofgem has ordered utility firm URE Energy to pay over more than £209,000 ($276,500) before 31 March.

The consequence follows URE’s failure to pay into an Ofgem-managed buy-out fund when it failed to meet its renewable energy targets.

UK Energy companies that don’t source the required percentage of electricity from renewable sources have to pay into the fund, according to the country’s Renewable Obligation Fund.

Following a 21 day consultation period, it was found that URE had failed to meet its obligation in 2018, and the supplier fined a total of £209,013.78 or its failure to pay into the und, alog with a late interest payment of £1,989.42.

If URE fail to make payment by end-March, further action could follow.

Ofgem were given representations that supported the order ffrom big six energy supplier SSE, sharing concerns that suppliers who do comply are penalised by the inaction of non-compliant companies like URE.

Ofgem said: “The Authority notes that URE has indicated that it intends to make payments in satisfaction of the outstanding sums but, despite various assurances provided to date, has not taken concrete steps to make specific proposals of a repayment nor to make any actual repayments. The Authority is concerned that time is elapsing without resolution of this issue and repayment of monied due.

“Additionally, it is concerned that URE will shortly be required to produce ROCs and/or make arrangements for payments in lieu to the Authority in respect of the obligation period of 1st April 2018 to 31st March 2019.

“The Authority considers that a deadline for payment of 31st March 2019 is sufficient to allow URE further time to complete any commercial arrangements necessary to meet its obligations whilst at the same time providing a finite cut-off point.”