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UK's Ofgem orders five energy suppliers to pay up or risk licence

UK's Ofgem launches investigations into SSE Generation, EP SHB
UK's Ofgem launches investigations into SSE Generation, EP SHB   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">LONDON</span> -Five small British energy suppliers must make payments to regulator Ofgem for its renewable scheme or face losing their licences, Ofgem said on Tuesday.</p> <p>The orders come during a crisis for Britain’s energy suppliers, with record wholesale energy prices already forcing some small supplier to go bust and leading larger suppliers to call on the government for help.</p> <p>The suppliers, Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy owe 765,000 pounds in total for a government scheme to help pay for renewables, the regulator said in a statement.</p> <p>“If the suppliers fail to comply with the order made against them, Ofgem may take further enforcement action and they could end up having their licences revoked or facing a financial penalty,” Ofgem said.</p> <p>Four suppliers have already gone bust this month, with around 40 energy suppliers currently in the market compared with a peak of 70 in 2018.</p> <p>Many smaller suppliers, with less capital available to hedge their customers needs, have struggled to keep pace with rapid wholesale energy prices, with benchmark British gas contracts rising around 200% this year.</p> </div>