Energy firms feel the heat over failure to pay nearly £15m in green taxes

Four power suppliers that owe almost £15m in green taxes risk being stripped of their licences.

Robin Hood Energy, Toto Energy, Gnergy, and Delta Gas and Power have been given a month by the industry regulator to make the compulsory renewable energy payments, after missing the original 1 September deadline.

Ofgem warned the suppliers must meet their obligations “or pay the consequences”.

Within the industry, failure to make the payments signals a firm could be in trouble.

Of the three that did not meet the second deadline last year, URE Energy lost its licence while Economy Energy and Spark both went bust.

The money pays for renewable obligation certificates which demonstrate to Ofgem the companies are funding green initiatives in the move to shift the UK away from relying on fossil fuels.

Robin Hood Energy, which is a not-for-profit supplier owned by Nottingham City Council, owes £9.4m.

Toto Energy owes £4.6m, Gnergy £673,876, and Delta £91,937.

Mary Starks, executive director of consumers and markets at Ofgem, said: “The renewables obligation schemes provide important support to renewable electricity generators and play an important role in Great Britain’s journey to a net zero-emission economy by 2050.

“Supplier failure to comply with the schemes undermines the integrity of the schemes and is unacceptable.

“It also adds to the costs of other suppliers who do meet their obligations as they have to absorb or make up any shortfall.

“This enforcement action sends a strong signal that suppliers must meet their obligations, or pay the consequences, which could mean losing their licence.”

Nottingham City Council has drafted in troubleshooters to try and turn around Robin Hood Energy.

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