The UK energy regulator will fine supplier Delta Gas and Power for late payments into a scheme to support renewable energy development.
Alleging the payment was deliberately missed, Ofgem said it planned to fine the non-domestic energy supplier £100,000, which would be reduced to £70,000 if Delta settles.
The watchdog said the lack of the £0.53mln Renewables Obligation (RO) payment denied it a significant amount of cash amid difficult market conditions.
On October 31, Delta, previously known as Lily Energy, missed the deadline to pay the RO bill despite multiple reminders and a final order, said Ofgem. The sum includes late payment interest.
The RO scheme supports large-scale renewable electricity projects and places an obligation on suppliers to increasingly source electricity from renewable sources.
“It is not acceptable for suppliers to delay meeting their obligations until enforcement action is taken by Ofgem,” said Cathryn Scott, director of enforcement and emerging issues at Ofgem.
“Compliance and enforcement engagement is a resource and time-intensive activity, and we take a very dim view of any repeat offenders.”
Delta now has 21 days to respond to the notice of intent, after which an official decision will be made on whether to issue the penalty, said Ofgem.