Ofgem consulting on issuing final orders for five energy suppliers due to late renewables payments

The companies owe £7 million between them but with pressures from record high wholesale energy prices concerns are high that all five may be unable to pay what they owe by the late payment deadline of October 31^st.

The companies in question are Ampoweruk, Colorado Energy, Goto Energy, Home Energy Trading and Whoop Energy.

According to Ofgem, AmpowerUK owes more than half of the total, with the replier required to make £3.59 million in obligation payments.

Meanwhile, Goto Energy owes £2.47million, Colorado Energy £883,182, Whoop Energy £56,306 and Home Energy Trading needs to pay £2,252.

Under the Renewable Obligation scheme every energy supplier must prove that they have sourced enough electricity from renewable sources in order to meet their obligations. Most suppliers do this by presenting the regulator with Renewable Obligation Certificates (ROCs) by the initial deadline of September 1^st.

This time of year, is always one that puts considerable pressure on smaller energy suppliers with several going bust due to their inability to pay what they owe. Last year for example we saw Tonik Energy forced out of the market.

The inability to pay their obligations is often regarded as a sign of a supplier being in financial distress and with the current crisis, we could be about to see more suppliers exit the market adding to the nine to have exited last month.

If suppliers are unable to pay what they owe by the end of the month, then Ofgem will take punitive action against them including the possibility of revoking their energy supply licences.

Ofgem said that it has sought assurances from the suppliers that will be able to pay but that so far none have provided them with adequate assurances that they will make their payments by the end of the month.

Also read: What has caused the Energy Market Crisis and what does it mean for the energy retail market?