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Ofgem threatens to revoke Nabuh Energy’s license

Emma Lunn
Written By:
Emma Lunn

Ofgem has issued Nabuh Energy with a provisional order compelling the supplier to pay £872,200 plus interest in Renewables Obligations.

Failure to make the payment is likely to see Ofgem revoke Nabuh’s license to supply energy in the UK.

Under the government’s Renewables Obligation schemes, suppliers have to demonstrate they have sourced enough electricity from renewable sources to meet their obligation by presenting Renewables Obligation Certificates (ROCs) to Ofgem by 1 September.

If suppliers do not have enough ROCs to meet their obligation, they must make up the shortfall by paying into a buy-out fund administered by Ofgem by 31 August.

Nabuh Energy failed to pay into the buy-out fund or present the required number of ROCs by the 31 August and 1 September 2019 deadlines.

The Sheffield-based supplier previously gave assurances to Ofgem that it would meet its Renewables Obligations by 31 October 2019, but has since indicated it will not be in the position to make payment by the deadline.

Peter Earl, head of energy at Compare The Market, 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.

“When energy firms fail on their obligations, unsuspecting customers should not have to pick up the tab through increased costs.”

Nabuh Energy is the second company in a week to be hit with a provisional 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, and subsequently went bust.