Three energy suppliers face losing licences over £15m unpaid green taxes

Cathryn Scott, Ofgem’s director of enforcement and emerging issues

The energy regulator has issued three final orders for £15m in unpaid fees for renewable energy programmes and warned it could strip the offending suppliers of their licences if they do not pay up.

Ofgem said Renewables Obligation (RO) fees are owed by Nabuh Energy, Robin Hood Energy and Symbio Energy, with all three unable to provide adequate assurances that they will make the payments by a final deadline on October 31.

An original deadline at the end of September was breached by seven suppliers owing a combined £33.86m, with Ofgem saying Co-Operative Energy and Flow Energy have now given suitable assurances, MA Energy has paid up in full, and Tonik Energy went bust.

The regulator said: “If suppliers fail to make the payments, Ofgem could take further enforcement action which could include revoking a supplier’s licence.”

Robin Hood Energy owes the most under the RO, which is a green tax charged to customers and subsequently supposed to be handed to Ofgem, with £12m outstanding.

The company had been hailed as a new kind of supplier, operating as a not-for-profit enterprise, but the huge costs in launching an energy firm quickly overwhelmed the council-backed business.

It went bust last month with auditors Grant Thornton calculating that Nottingham City Council invested £43m into the company and risked £16.5m in guarantees. British Gas took on the firm’s customers following the collapse.