The truth about our £9.4 million Ofgem payment and company accounts. There has been a lot of speculation today about our business. But in the interest of openness and transparency, we wanted to set the record straight. Our £9.4m Ofgem payment As a UK energy supplier, we are obligated by Ofgem to source an increasing proportion of the electricity we supply from renewable sources. Renewable Obligation Certificates (ROCs) are certificates issued to operators of accredited renewable generating stations (solar and wind farms etc.) for the eligible renewable electricity they generate. ROCs are then used by suppliers to demonstrate that they have met their obligation. Where suppliers do not present a sufficient number of ROCs to meet their obligation, they must pay an equivalent amount into Ofgem’s buy-out fund. Since July 2018 we have only bought 100% renewable electricity, but as we do not physically own any electric generation capabilities, we pay into Ofgem’s buy-out fund. Like all suppliers, we are obligated to pay our ROCs payment. We had planned to pay all our ROCs payment in one go. We have always paid in full and on time in the past since entering the market in 2015. In August of this year, we wrote to Ofgem and met them in September to discuss making this year’s payment in instalments, as they had previously agreed with other suppliers last year. This was a prudent business decision to help us more effectively manage the high demand of the winter period, a potential general election as well as mitigating potential market risks around a No-Deal Brexit. Despite welcoming our proactive approach and advising that as long as our ROCs payment was made by March 2020, which we had always planned to do, then this matter would be resolved. However, Ofgem has now written to us today (1st October 2019) demanding payment in full by 31st October.
Robin Hood Energy 1st Oct 2019 read more »