Ofgem Announces ROCs Mutualisation of £97m
Updated: Dec 15, 2020
Ofgem have announced today that the ROCs mutualisation will be ~£97m, with the largest amount outstanding at 1/11 being £38m owed by Hudson Energy Supply.
Excluding Hudson, £1.8m was outstanding by three struggling suppliers who are still trading, Breeze, Gnergy, and Nabuh. The remainder is outstanding from failed suppliers.
The situation appears to be complicated by the fact a number of suppliers paid after 1/11 including Shell (for the Hudson obligations).
“RO legislation does not provide for payments received after the late payment deadline. As such, the amount to be mutualised is calculated by reference to the total shortfall in the late payment fund as of 31 October and the mutualisation sum is not recalculated to account for payments received after the late payment deadline” - Ofgem.
Breeze and Nabuh also owe £0.8m for the Capacity Market Standstill Period.
The energy market has clearly been challenging for a number of suppliers, but a mutualisation bill of £97m will be a bitter pill to swallow for the remaining suppliers.